/raid1/www/Hosts/bankrupt/TCREUR_Public/250225.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, February 25, 2025, Vol. 26, No. 40
Headlines
F R A N C E
CASINO GUICHARD: EUR1.41BB Bank Debt Trades at 30% Discount
G E R M A N Y
GHD VERWALTUNG: EUR360MM Bank Debt Trades at 22% Discount
PEACH PROPERTY: Fitch Affirms 'B-' Rating on Sr. Unsecured Notes
I R E L A N D
ANCHORAGE CAPITAL I: Fitch Affirms 'B-sf' Rating on Class F Notes
AQUEDUCT EUROPEAN 4-2019: Fitch Hikes Rating on Cl. E Notes to BB+
CAIRN CLO VII: Fitch Lowers Rating on Class E Notes to 'BBsf'
CIFC EUROPEAN V: Fitch Hikes Rating on Class E Notes to 'BBsf'
CVC CORDATUS X: Fitch Assigns 'B-sf' Final Rating on Cl. F-R Notes
CVC CORDATUS XV: Fitch Hikes Rating on Class F Notes to 'Bsf'
I T A L Y
DOVALUE SPA: Fitch Assigns 'BB' Final Rating on Sr. Secured Notes
L U X E M B O U R G
ALTISOURCE SARL: $412MM Bank Debt Trades at 66% Discount
S P A I N
CCM I: Fitch Hikes Rating on Class D Notes to 'BB-sf'
[] Fitch Affirms Ratings on 3 Hipocat Spanish RMBS Deals
S W E D E N
SAMHALLSBYGGNADSBOLAGET AB: Fitch Affirms 'CCC+' LongTerm IDR
S W I T Z E R L A N D
ALLWYN INTERNATIONAL: Fitch Alters Outlook on 'BB-' IDR to Positive
T U R K E Y
KONYA METROPOLITAN: Fitch Ups LongTerm IDRs to BB-, Outlook Stable
RONESANS GAYRIMENKUL: Fitch Affirms B+ LongTerm IDR, Outlook Stable
[] Fitch Affirms BB- LongTerm IDRs on 3 Turkish NBFI Subsidiaries
U N I T E D K I N G D O M
CANARY WHARF: Fitch Affirms 'B' LongTerm IDR, Outlook Negative
CURZON MORTGAGES: Fitch Affirms 'B+sf' Rating on Class G Notes
OSPREY ACQUISITIONS: Fitch Alters Outlook on 'BB+' IDR to Negative
STRATTON MORTGAGE 2024-2: Fitch Affirms 'BB+sf' Rating on F Notes
URBANFITNESS LONDON: Begbies Traynor Named as Administrators
- - - - -
===========
F R A N C E
===========
CASINO GUICHARD: EUR1.41BB Bank Debt Trades at 30% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Casino Guichard
Perrachon SA is a borrower were trading in the secondary market
around 70.2 cents-on-the-dollar during the week ended Friday,
February 21, 2025, according to Bloomberg's Evaluated Pricing
service data.
The EUR1.41 billion Term loan facility is scheduled to mature on
March 30, 2027. The amount is fully drawn and outstanding.
Casino Guichard-Perrachon SA operates a wide range of hypermarkets,
supermarkets, and convenience stores. The Company operates stores
in Europe and South America. The Company’s country of domicile is
France.
=============
G E R M A N Y
=============
GHD VERWALTUNG: EUR360MM Bank Debt Trades at 22% Discount
---------------------------------------------------------
Participations in a syndicated loan under which GHD Verwaltung
Gesundheits GmbH Deutschland is a borrower were trading in the
secondary market around 78.5 cents-on-the-dollar during the week
ended Friday, February 21, 2025, according to Bloomberg's Evaluated
Pricing service data.
The EUR360 million Term loan facility is scheduled to mature on
August 17, 2026. The amount is fully drawn and outstanding.
GHD Verwaltung Gesundheits GmbH Deutschland provides healthcare
services. The Company offers rehabilitation, wound care,
orthopedics, pediatrics, pain management, and other services. GHD
Verwaltung Gesundheits conducts its business in Germany.
PEACH PROPERTY: Fitch Affirms 'B-' Rating on Sr. Unsecured Notes
----------------------------------------------------------------
Fitch Ratings has affirmed six EMEA residential-for-rent real
estate companies' ratings, following the update of the EMEA Real
Estate Ratings Navigator, which was part of the revision of Sector
Navigators in the Corporate Rating Criteria, dated December 6,
2024. All their ratings and Outlooks are unaffected by the changes
to specific Navigator sub-factors and blended factors.
This RAC covers EMEA residential-for-rent property companies.
Sector Navigators provide guidance on how Fitch applies the
Corporate Rating Criteria to issuers within the sector that each
specific Navigator addresses. Fitch's EMEA Real Estate: Ratings
Navigator Companion report, dated 12 February 2025, and the updated
EMEA Real Estate: Residential-for-Rent Property Companies —
Relative Credit Analysis report, dated 17 February 2025, detail all
the qualitative and quantitative factors and sub-factors for
assessing these companies.
Key Rating Drivers
D.V.I. Deutsche Vermogens- und Immobilienverwaltungs GmbH
"Fitch Affirms DVI at 'BBB-'; Outlook Stable", dated December 12,
2024
Grainger plc
"Fitch Affirms Grainger's IDR at 'BBB-'; Senior Secured Debt at
'BBB'", dated January 30, 2025
Heimstaden Bostad AB
"Fitch Revises Heimstaden Bostad's Outlook to Stable; Affirms
Ratings at 'BBB-'", dated January 10, 2025
Peach Property Group AG
"Fitch Affirms Peach Property's IDR at 'CCC+'; Unsecured 'B-' Debt
Rating Off RWN", dated January 21, 2025
SCI LAMARTINE
"Fitch Affirms SCI Lamartine's IDR at 'BBB+'/Stable; Senior
Unsecured at 'A-'", dated August 7, 2024
Vonovia SE
"Fitch Assigns Vonovia a First-Time Rating of 'BBB+'; Outlook
Stable", March 28, 2024
Derivation Summary
See relevant RAC for each issuer.
Key Assumptions
See relevant RAC for each issuer.
RATING SENSITIVITIES
See relevant RAC for each issuer.
Liquidity and Debt Structure
See relevant RAC for each issuer.
Issuer Profile
See relevant RAC for each issuer.
Sources of Information
Public Ratings with Credit Linkage to other ratings
See relevant RAC for each issuer.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts 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.
ESG Considerations
See relevant RAC for each issuer.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Peach Property
Group AG LT IDR CCC+ Affirmed CCC+
senior unsecured LT B- Affirmed RR3 B-
SAS Nerval
senior unsecured LT A- Affirmed A-
SCI LAMARTINE LT IDR BBB+ Affirmed BBB+
senior unsecured LT A- Affirmed A-
Vonovia SE LT IDR BBB+ Affirmed BBB+
senior unsecured LT BBB+ Affirmed BBB+
Grainger plc LT IDR BBB- Affirmed BBB-
senior secured LT BBB Affirmed BBB
D.V.I. Deutsche
Vermogens- und
Immobilienverwaltungs
GmbH LT IDR BBB- Affirmed BBB-
senior unsecured LT BBB- Affirmed BBB-
Peach Property
Finance GmbH
senior unsecured LT B- Affirmed RR3 B-
Heimstaden Bostad AB LT IDR BBB- Affirmed BBB-
senior unsecured LT BBB- Affirmed BBB-
subordinated LT BB Affirmed BB
Heimstaden Bostad
Treasury B.V.
senior unsecured LT BBB- Affirmed BBB-
=============
I R E L A N D
=============
ANCHORAGE CAPITAL I: Fitch Affirms 'B-sf' Rating on Class F Notes
-----------------------------------------------------------------
Fitch Ratings has upgraded Anchorage Capital Europe CLO I DAC class
B and C notes and affirmed the rest.
Entity/Debt Rating Prior
----------- ------ -----
Anchorage Capital
Europe CLO I DAC
A-1-R XS2398917133 LT AAAsf Affirmed AAAsf
A-2-R XS2398917729 LT AAAsf Affirmed AAAsf
B XS1846661111 LT AA+sf Upgrade AAsf
C XS1846661384 LT A+sf Upgrade Asf
D-1 XS1846661541 LT BBB+sf Affirmed BBB+sf
D-2-R XS2399533798 LT BBB+sf Affirmed BBB+sf
E XS1846662432 LT BBsf Affirmed BBsf
F XS1846662358 LT B-sf Affirmed B-sf
Transaction Summary
Anchorage Capital Europe CLO I DAC is a cash flow collateralised
loan obligation (CLO) actively managed by the manager, Anchorage
Capital Group, LLC. The reinvestment period ended in July 2022. The
class A-1, A-2 and D-2 notes were refinanced in October 2021.
KEY RATING DRIVERS
Deleveraging Increases Senior Notes' Buffer: Since the last review
in March 2024, the class A-1-R and A-2-R notes have repaid EUR36.5
million, resulting in an increased credit enhancement (CE) of 2.5%
for the class B notes. The transaction's deleveraging has resulted
in an enlarged default-rate cushion for the senior notes to support
their current ratings and absorb further defaults in the portfolio.
Additionally, the transaction has accumulated EUR42 million in
principal cash, which Fitch expects to boost CE and default-rate
cushions further after the next payment date.
Transaction Outside Reinvestment Period: The transaction is
currently in breach of the Fitch 'CCC' test and Moody's maximum
weighted average rating factor (WARF) tests, among others. While
the failure of these tests would restrict the manager's ability to
reinvest sale proceeds and unscheduled principal proceeds, the
manager may still be able to sell weak credits in the portfolio and
cure the failing tests. For this reason, Fitch's analysis is based
on a stressed portfolio, where Fitch tested the ratings that the
notes could achieve using Fitch matrices.
Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors at 'B'/'B-'. The Fitch WARF of
the current portfolio is 26.1.
High Recovery Expectations (Positive): Over 98% 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 portfolio is 61.6%.
Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration, as calculated by Fitch, is 20.2%, and no obligor
represents more than 2.6% of the portfolio balance. Exposure to the
three-largest Fitch-defined industries is 36.1%, as calculated by
the trustee. Fixed-rate assets reported by the trustee are 7.4% of
the portfolio balance, which compares favourably with a limit of
15%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Based on the current portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrades may result from stable portfolio credit quality and
deleveraging, leading to higher credit enhancement and excess
spread available to cover losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for Anchorage Capital
Europe CLO I 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.
AQUEDUCT EUROPEAN 4-2019: Fitch Hikes Rating on Cl. E Notes to BB+
------------------------------------------------------------------
Fitch Ratings has upgraded Aqueduct European CLO 4-2019 DAC class
B-1-R, B-2-R, C-R, D-R and E notes and affirmed the rest. The
Outlooks are Stable.
Entity/Debt Rating Prior
----------- ------ -----
Aqueduct European
CLO 4-2019 DAC
A-R XS2387681443 LT AAAsf Affirmed AAAsf
B-1-R XS2387682177 LT AA+sf Upgrade AAsf
B-2-R XS2387682763 LT AA+sf Upgrade AAsf
C-R XS2387683498 LT A+sf Upgrade Asf
D-R XS2387683902 LT BBB+sf Upgrade BBBsf
E XS2004874512 LT BB+sf Upgrade BBsf
F XS2004875758 LT B-sf Affirmed B-sf
Transaction Summary
Aqueduct European CLO 4-2019 DAC is a cash flow collateralised loan
obligation (CLO) actively managed by HPS Investment Partners CLO
(UK) LLP.
KEY RATING DRIVERS
Performance Exceeds Rating Case: The transaction is currently
slightly below par by 0.4% but the losses are smaller than its
rating case. Exposure to assets with a Fitch-derived rating of
'CCC+' and below is 4.7%, according to the January trustee report.
The portfolio has no defaulted assets. As of the latest payment
date in January 2025, the class A-R notes have paid down by around
EUR20 million since its last review in March 2024. Small increases
in credit enhancement and the transaction's better-than- expected
performance since the last review support the rating actions.
Large Cushion Supports Stable Outlooks: All notes have large
default-rate buffers to support their ratings and should be capable
of absorbing further defaults in the portfolio. The notes have
sufficient credit protection to withstand potential deterioration
in the credit quality of the portfolio at their ratings.
'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the underlying obligors at 'B'/'B-'. The weighted average rating
factor (WARF) of the current portfolio is 24.9 as calculated by
Fitch under its latest criteria.
High Recovery Expectations: Senior secured obligations comprise
98.5% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-calculated weighted average recovery
rate (WARR) of the current portfolio is 62.9%.
Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration, as calculated by Fitch, is 13.5%, and no obligor
represents more than 1.7% of the portfolio balance. Exposure to the
three-largest Fitch-defined industries is 32.2%, as calculated by
the trustee. Fixed-rate assets reported by the trustee are
currently at 9.8% of the portfolio balance, versus a limit of 10%.
Transaction Outside Reinvestment Period: The reinvestment period
ended in January 2024 but the manager can continue to reinvest
unscheduled principal proceeds and sale proceeds from
credit-improved or credit-impaired obligations, subject to
compliance with the reinvestment criteria. Given the manager's
ability to reinvest, Fitch's analysis is based on a stressed
portfolio using the agency's collateral quality matrix specified in
the transaction documentation.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Downgrades may occur if the build-up of the notes' credit
enhancement following amortisation does not compensate for a larger
loss expectation than initially assumed, due to unexpectedly high
levels of defaults and portfolio deterioration.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrades may result from stable portfolio quality and deleveraging,
leading to higher credit enhancement and excess spread available to
cover losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or european
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for Aqueduct European
CLO 4-2019 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.
CAIRN CLO VII: Fitch Lowers Rating on Class E Notes to 'BBsf'
-------------------------------------------------------------
Fitch Ratings has downgraded Cairn CLO VII DAC's class E notes and
revised the Outlook on the class F notes to Negative from Stable.
Entity/Debt Rating Prior
----------- ------ -----
Cairn CLO VII DAC
A-1R XS2066880928 LT AAAsf Affirmed AAAsf
A-2 XS1538266682 LT AAAsf Affirmed AAAsf
B XS1538266849 LT AAAsf Affirmed AAAsf
C-R XS2066883195 LT A+sf Affirmed A+sf
D XS1538267490 LT BBB+sf Affirmed BBB+sf
E XS1538267227 LT BBsf Downgrade BB+sf
F XS1538268381 LT B-sf Affirmed B-sf
Transaction Summary
Cairn CLO VII DAC is a cash flow CLO comprising mostly senior
secured obligations. The transaction is actively managed by Cairn
Loan Investments, LLP and exited its reinvestment period in January
2021.
KEY RATING DRIVERS
Increasing Long-dated Assets (LDA): According to the latest
investor report dated January 2025, exposure to assets with a
maturity beyond the legal final maturity of the transaction (LDA)
increased to 8.8% via maturity extensions from 7.6% at the December
2024 review. According to the criteria, Fitch deems LDA to expose
the notes to market value risk and assumes they are subject to a
fire sale prior to or at the last payment period, with the CLO
notes receiving only the assumed recovery value.
Differently from recent CLOs, the transaction documentation does
not envisage any haircut in the adjusted collateral principal
amount used to calculated the coverage tests.
Deteriorating Portfolio Affects Junior Notes: Since the December
2024 review, the portfolio has seen further par erosion to 2.9%
below par from 2.2%. The notional amount of defaults has increased
to EUR8 million from EUR4.5 million, leading to a decrease of the
class E and F par value tests by almost 1% to 109.1% and 105.6%,
respectively, and resulting in reduced default-rate cushions for
the junior notes. The transaction also faces refinancing risk with
19% of assets maturing by end-2026, albeit down from 24% in
December.
Senior Notes Benefit from Cushion: The ratings and Outlooks of the
class A-1R to D notes are driven by the large default-rate buffers
to support their ratings and should be capable of absorbing further
defaults in the portfolio.
'B' Portfolio: Fitch assesses the average credit quality of the
underlying obligors at 'B'. The weighted average rating factor of
the current portfolio is 24, as calculated by Fitch under its
latest criteria.
High Recovery Expectations: Senior secured obligations comprise
100% of the portfolio. Fitch views the recovery prospects for these
assets as more favorable than for second-lien, unsecured and
mezzanine assets. The weighted average recovery rate (WARR) of the
current portfolio, as reported by the trustee, is 60.9%.
Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration, as calculated by Fitch, is 26.7%, and no obligor
represents more than 3.4% of the portfolio balance. Exposure to the
three largest Fitch-defined industries is 25%, as calculated by the
trustee. Fixed-rate assets reported by the trustee are 3.1% of the
portfolio balance, which compares favourably with the 5% limit.
Transaction Outside Reinvestment Period: Although the transaction
exited its reinvestment period in January 2021, the manager can
reinvest unscheduled principal proceeds and sale proceeds from
credit risk obligations and credit-impaired obligations after the
reinvestment period, subject to compliance with the reinvestment
criteria.
Given the manager's ability to reinvest, Fitch's analysis is based
on a stressed portfolio and tested the ratings achievable by the
notes across the Fitch matrices, since the portfolio can migrate to
different collateral-quality tests limits. Fitch also applied a
haircut of 1.5% to the WARR as the calculation of the WARR in the
transaction documentation is not in line with its latest CLO
Criteria.
Deviation from MIR: The class E notes' rating is one notch above
its model-implied rating (MIR), reflecting Fitch's view that the
remaining transaction life still provides the manager with
flexibility to sell LDA, limiting potential trade losses.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Based on the current portfolio, downgrades may occur if loss
expectations are larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration.
The class E and F notes may be downgraded unless the manager sells
the LDAs prior to the legal final maturity without significant
trading losses.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrades may result from stable portfolio credit quality and
deleveraging, leading to higher credit enhancement and excess
spread available to cover losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for Cairn CLO VII 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.
CIFC EUROPEAN V: Fitch Hikes Rating on Class E Notes to 'BBsf'
--------------------------------------------------------------
Fitch Ratings has upgraded CIFC European Funding CLO V DAC class E
notes, and affirmed the rest.
Entity/Debt Rating Prior
----------- ------ -----
CIFC European Funding
CLO V DAC
Class A XS2390489198 LT AAAsf Affirmed AAAsf
Class B-1 XS2390489784 LT AAsf Affirmed AAsf
Class B-2 XS2390489602 LT AAsf Affirmed AAsf
Class C XS2390490105 LT Asf Affirmed Asf
Class D XS2390490360 LT BBB-sf Affirmed BBB-sf
Class E XS2390490527 LT BBsf Upgrade BB-sf
Class F XS2390490790 LT B-sf Affirmed B-sf
Transaction Summary
CIFC European Funding CLO V DAC is a cash flow CLO comprising
mostly senior secured obligations. The transaction will exit its
reinvestment period in August 2026 and the portfolio is actively
managed by CIFC Asset Management Europe Ltd.
KEY RATING DRIVERS
Stable Performance: Since Fitch's last review in April 2024, the
portfolio's performance has remained stable. According to the last
trustee report dated 3 January 2025, the transaction was passing
all of its collateral-quality and portfolio-profile tests.
The transaction is currently 0.03% below its target par, but losses
remain below its rating-case expectation. Exposure to assets with a
Fitch-derived rating of 'CCC+' and below is currently 3.1%,
according to the trustee, compared with a limit of 7.5%. The
transaction also has no defaulted assets in the portfolio.
Large Cushion Supports Class E Upgrade: The upgrade of the class E
notes reflects the comfortable default-rate buffer, which should be
capable absorbing further defaults in the portfolio. At current
ratings, all notes have sufficient credit protection to withstand
potential deterioration in the credit quality of the portfolio.
'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the underlying obligors at 'B'/'B-'. The weighted average rating
factor (WARF) of the current portfolio is 25 as calculated by Fitch
under its latest criteria.
High Recovery Expectations: Senior secured obligations comprise 97%
of the portfolio. Fitch views the recovery prospects for these
assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-calculated weighted average recovery
rate (WARR) of the current portfolio is 61.3%.
Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration, as calculated by Fitch, is 10%, and no obligor
represents more than 1.2% of the portfolio balance. Exposure to the
three-largest Fitch-defined industries is 35.7%, as reported by the
trustee. Fixed-rate assets reported by the trustee are 5.2% of the
portfolio balance, which compares favourably with a limit of 10%.
Transaction Inside Reinvestment Period: The transaction is in its
reinvestment period until August 2026, during which the manager can
reinvest sale proceeds and principal proceeds into new assets,
subject to compliance with the reinvestment criteria. Given the
manager's ability to reinvest, Fitch's analysis is based on a
portfolio where the agency stresses the transaction's covenants to
their limits.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Based on the current portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrades may result from stable portfolio credit quality and
deleveraging, leading to higher credit enhancement and excess
spread available to cover losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for CIFC European
Funding CLO V 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.
CVC CORDATUS X: Fitch Assigns 'B-sf' Final Rating on Cl. F-R Notes
------------------------------------------------------------------
Fitch Ratings has assigned CVC Cordatus Loan Fund X DAC final
ratings.
Entity/Debt Rating
----------- ------
CVC Cordatus Loan
Fund X DAC
Class A-R XS2988633322 LT AAAsf New Rating
Class B-1-R XS2988633678 LT AAsf New Rating
Class B-2-R XS2988633835 LT AAsf New Rating
Class C-R XS2988634056 LT Asf New Rating
Class D-R XS2988634213 LT BBB-sf New Rating
Class E-R XS2988634486 LT BB-sf New Rating
Class F-R XS2988634643 LT B-sf New Rating
Subordinated Notes
XS1730939938 LT NRsf New Rating
Transaction Summary
CVC Cordatus Loan Fund X DAC is a securitisation of mainly (at
least 90%) senior secured obligations with a component of senior
unsecured, mezzanine, second lien loans and high-yield bonds. Note
proceeds have been used to purchase a portfolio with a target par
of EUR450 million. The portfolio is actively managed by CVC Credit
Partners Investment Management Limited and the CLO has about
reinvestment period of about 4.9 years and an eight-year weighted
average life (WAL) test.
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 24.8.
High Recovery Expectations (Positive): At least 90% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate of the identified portfolio is 58.6%.
Diversified Portfolio (Positive): The transaction includes two
matrix sets with a top 10 obligor concentration limit at 20% and
fixed-rate asset limits of 12.5%; one effective at closing and the
other effective one year after closing (or two years after if the
WAL steps up condition is satisfied), provided the collateral
principal amount (defaults at Fitch-calculated collateral value) is
at least at the reinvestment target par balance, among other
things.
There are various concentration limits, including the 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.
WAL Step-Up Feature (Neutral): The transaction can extend the WAL
by one year on the step-up date, which is one year after closing.
The WAL extension is at the option of the manager but subject to
conditions including passing the Fitch collateral-quality,
portfolio-profile and coverage tests and the aggregate collateral
balance (defaulted obligations at their Fitch-calculated collateral
value) being at least at the target par.
Portfolio Management (Neutral): The transaction will have a
reinvestment period of about 4.9 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 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, the Fitch WARF test and the Fitch 'CCC' bucket
limitation test after reinvestment as well as 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 the stress
period.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings of
the identified portfolio would lead to downgrades of no more than
one notch for the class B-R through E-R notes, to below 'B-sf' for
the class F-R, and have no impact on the class A notes.
Based on the identified portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio than
the Fitch-stressed portfolio, the class B-R, C-R, D-R, E-R and F-R
notes have a rating cushion of two notches, and the class A-R notes
have no rating cushion as they are already at the highest
achievable rating.
Should the cushion between the identified portfolio and the
Fitch-stressed portfolio be eroded due to manager trading or
negative portfolio credit migration, a 25% increase of the mean RDR
across all ratings and a 25% decrease of the RRR across all ratings
of the Fitch-stressed portfolio would lead to downgrades of up to
four notches.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A 25% reduction of the mean RDR across all ratings and a 25%
increase in the RRR across all ratings of the Fitch-stressed
portfolio would lead to upgrades of up to two notches, except for
the 'AAAsf' notes, which are at the highest level on Fitch's scale
and cannot be upgraded.
During the reinvestment period, based on the Fitch-stressed
portfolio, upgrades may occur on better-than-expected portfolio
credit quality and a shorter remaining WAL test, allowing the notes
to withstand larger-than-expected losses for the transaction's
remaining life. After the end of the reinvestment period, upgrades
may result from stable portfolio credit quality and deleveraging,
leading to higher credit enhancement and excess spread available to
cover losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognized Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for CVC Cordatus Loan
Fund X 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.
CVC CORDATUS XV: Fitch Hikes Rating on Class F Notes to 'Bsf'
-------------------------------------------------------------
Fitch Ratings has upgraded CVC Cordatus Loan Fund XV DAC class
B-1-R, B-2-R, C-R, D-R, E and F notes, while affirming its class
A-R notes at 'AAAsf'. The Outlook is Stable.
Entity/Debt Rating Prior
----------- ------ -----
CVC Cordatus Loan
Fund XV DAC
A-R XS2382262793 LT AAAsf Affirmed AAAsf
B-1-R XS2382262959 LT AA+sf Upgrade AAsf
B-2-R XS2382263171 LT AA+sf Upgrade AAsf
C-R XS2382263338 LT A+sf Upgrade Asf
D-R XS2382263502 LT BBBsf Upgrade BBB-sf
E XS2025846671 LT BBsf Upgrade BB-sf
F XS2025847216 LT Bsf Upgrade B-sf
Transaction Summary
The transaction is a cash flow collateralised loan obligation
comprising mostly senior secured obligations. The transaction
exited its reinvestment period in February 2024 and the portfolio
is actively managed by CVC Credit Partners European CLO Management
LLP.
KEY RATING DRIVERS
Large Cushion Supports Upgrades: All notes have large default-rate
buffers to support their ratings. While the manager continues to
reinvest unscheduled principal proceeds and sale proceeds from
credit-risk obligations post-reinvestment period, in compliance
with the reinvestment criteria, some proceeds have been used to
repay senior notes. This has deleveraged the capital structure,
supporting the upgrades. Given the manager's ability to reinvest so
far, Fitch's analysis is based on a portfolio that Fitch has
stressed the transaction's covenants to their limits.
'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the underlying obligors at 'B'/'B-'. The Fitch-calculated weighted
average rating factor (WARF) of the current portfolio is 25.5 under
its latest criteria, down from 25.6 in April 2024.
High Recovery Expectations: Senior secured obligations comprised
94.8% of the portfolio, according to the latest trustee report
dated 31 December 2024. 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 current portfolio is 59.2%, versus 59.8% in
April 2024.
Slightly Worsening Performance: According to the last trustee
report, the transaction failed three of its collateral-quality and
portfolio-profile tests, including the share of Moody's Caa
obligations and the weighted average life (WAL) test. The portfolio
has no defaulted assets.
Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration, as calculated by Fitch, is 16.5%, and no obligor
represents more than 2% of the portfolio balance. Exposure to the
three-largest Fitch-defined industries was 28.3% as reported by the
trustee. Fixed-rate assets as reported by the trustee were 11.6% of
the portfolio balance, within its limit of 12.5%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Based on the current portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrades may result from stable portfolio credit quality and
deleveraging, leading to higher credit enhancement and excess
spread available to cover losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for CVC Cordatus Loan
Fund XV DAC.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, programme,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
=========
I T A L Y
=========
DOVALUE SPA: Fitch Assigns 'BB' Final Rating on Sr. Secured Notes
-----------------------------------------------------------------
Fitch Ratings has assigned doValue S.p.A.'s senior secured notes a
final rating of 'BB'.
The EUR300 million notes (ISIN XS2999576080 / XS2999578706) will be
due on February 28, 2030 and were listed for trading on the
Luxembourg Stock Exchange on February 13, 2025. Fitch expects no
material changes in doValue's leverage, and consequently ratings,
from the notes' issue, because their proceeds were used to
concurrently redeem doValue's outstanding EUR296 million notes
(ISIN: XS2367103780).
The final rating is in line with the expected rating Fitch assigned
to the notes on 03 February 2025 (see ' Fitch Rates doValue's
Upcoming Senior Secured Notes 'BB(EXP)').
Key Rating Drivers
Rating Equalised With IDR: The senior secured notes' rating is in
line with doValue's 'BB' Long-Term Issuer Default Rating (IDR),
reflecting Fitch's expectation of average recovery prospects,
despite the notes' secured nature. The notes are secured by
doValue's shares in its subsidiaries, which are also guarantors of
the bonds. The notes rank pari passu with the company's bank
facilities.
Transaction Is Rating Neutral: The transaction is neutral for
doValue's leverage, in Fitch's view, given that its proceeds are
used to prepay existing borrowings of the same amount. Fitch
calculates that doValue's leverage, defined as gross
debt-to-EBITDA, was about 3.7x at end-2024 based on the terms of
recent transactions (i.e. acquisition of Gardant, rights issue,
bond refinancing) and doValue's pro forma trailing-12-month figures
for end-3Q24 consolidating Gardant.
The key rating drivers for doValue's Long-Term IDR are outlined in
its rating action commentary published on 19 June 2024 (see 'Fitch
Affirms doValue at 'BB'; Outlook Stable').
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Any negative action on doValue's Long-Term IDR would drive a
corresponding action on the rating of the notes.
The rating may also be downgraded if Fitch believed that recovery
prospects were likely to weaken materially, although this is not
Fitch's base case.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of doValue's Long-Term IDR would result in a similar
action on the rating of the notes.
Significant improvements to the notes' recovery prospects, for
example, due to the issuance of material lower-ranking unsecured or
subordinated debt, could lead Fitch to notch the notes' rating up
from the Long-Term IDR.
Date of Relevant Committee
June 18, 2024
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
doValue S.p.A.
senior secured LT BB New Rating BB(EXP)
===================
L U X E M B O U R G
===================
ALTISOURCE SARL: $412MM Bank Debt Trades at 66% Discount
--------------------------------------------------------
Participations in a syndicated loan under which Altisource Sarl is
a borrower were trading in the secondary market around 34.3
cents-on-the-dollar during the week ended Friday, February 21,
2025, according to Bloomberg's Evaluated Pricing service data.
The $412 million Payment in kind Term loan facility is scheduled to
mature on April 2, 2025. About $220 million of the loan has been
drawn and outstanding.
Altisource Solutions S.a.r.l. specializes in developing and
providing services and technology solutions for real estate,
mortgage, and asset recovery and customer relationship management.
The Company’s country of domicile is Luxembourg.
=========
S P A I N
=========
CCM I: Fitch Hikes Rating on Class D Notes to 'BB-sf'
-----------------------------------------------------
Fitch Ratings has upgraded two tranches of AyT Colaterales Global
Hipotecario, FTA Serie CCM I (CCM 1) and affirmed two tranches.
Fitch has also affirmed AyT Caja Granada Hipotecario 1, FTA's
(Granada 1) notes. All tranches have been removed from Under
Criteria Observation.
Entity/Debt Rating Prior
----------- ------ -----
AyT Colaterales
Global Hipotecario,
FTA Serie CCM I
Class A ES0312273248 LT AAAsf Affirmed AAAsf
Class B ES0312273255 LT AA+sf Affirmed AA+sf
Class C ES0312273263 LT A+sf Upgrade Asf
Class D ES0312273271 LT BB-sf Upgrade Bsf
AyT Caja Granada
Hipotecario 1, FTA
Class A ES0312212006 LT A+sf Affirmed A+sf
Class B ES0312212014 LT A+sf Affirmed A+sf
Class C ES0312212022 LT Csf Affirmed Csf
Class D ES0312212030 LT Csf Affirmed Csf
Transaction Summary
The transactions comprise fully amortising Spanish residential
mortgages serviced by Caixabank, S.A. (A-/Stable/F2) for Granada 1,
and by Unicaja Banco, S.A. (BBB-/Positive/F3) for CCM 1.
KEY RATING DRIVERS
European RMBS Rating Criteria Updated: The rating actions reflect
the update of Fitch's European RMBS Rating Criteria on 30 October
2024. The update adopted a non-indexed current loan-to-value (LTV)
approach to derive the base foreclosure frequency (FF) on
portfolios, instead of the original LTV approach applied
previously. Fitch has also updated the loan level recovery rate cap
to 85% from 100% previously.
When calibrating the portfolio FF rates, Fitch has applied a 1.5x
transaction adjustment to CCM 1 to reflect its general assessment
of the pool considering historical performance data. Both
transactions have ample seasoning of more than 17 years, with a
weighted average non-indexed current LTV of less than 45% as of the
latest reporting date. As a result, the portfolio credit analysis
remains influenced by the criteria's minimum loss (e.g. 5% at
AAAsf).
Increasing CE: The rating actions reflect Fitch's view that the
notes are sufficiently protected by credit enhancement (CE) to
absorb the projected losses commensurate with the corresponding
rating scenarios, driving the upgrade of CCM 1 classes C and D
notes.
For Granada 1, Fitch expects structural CE to continue increasing
in the short to medium term given the prevailing sequential
amortisation of the notes, and gradual reduction of the principal
deficiency ledger. Despite the cash reserve fund having been fully
depleted for almost 10 years, CE ratios are robust at between 79%
and 22% for the class A and B notes as of December 2024.
The upgrade of CCM 1's class C notes reflects the recent upgrade of
the long-term deposit ratings of the transaction account bank (TAB)
provider, Banco Santander, S.A., to 'A+' from 'A' as the cash
reserve fund held at the TAB represents a material source of total
CE. The rating cap reflects excessive counterparty dependence as
per Fitch's criteria.
Portfolio Risky Features: The portfolios are highly exposed to the
region of Andalucía (over 84% for Granada 1) and Castilla la
Mancha (over 77% for CCM 1). To address regional concentration
risk, Fitch applies higher rating multiples to the base FF
assumption to the portion of the portfolios that exceeds 2.5x the
population within these regions relative to the national total.
Additionally, more than 46% and 64% of the assets in Granada 1 and
CCM 1, respectively, have an original term to maturity greater than
30.5 years, which carries a FF adjustment of 120% within Fitch's
credit analysis.
Ratings Capped by Counterparty Risks (ESG Consideration): For
Granada 1, the maximum achievable rating remains at 'A+sf, due to
the TAB's contractually defined minimum eligibility ratings of
'BBB+' or 'F2', which are not compatible with the 'AAsf' or 'AAAsf'
category ratings as per Fitch's Structured Finance and Covered
Bonds Counterparty Rating Criteria. The TAB eligibility triggers
were changed in December 2015 from 'A' and 'F1' as of the closing
date.
CCM 1 is unhedged, with fixed-rate liabilities and floating rate
portfolio linked to 12-month Euribor. However, current and
projected CE protection for the rated notes is sufficient to
mitigate the associated cash flow risks. Under the prevailing
stable rate environment, the difference between floating assets and
fixed rate liabilities is providing positive excess spread to the
transaction.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- For senior notes rated 'AAAsf', a downgrade of Spain's Long-Term
Issuer Default Rating (IDR) that could decrease the maximum
achievable rating for Spanish structured finance transactions. This
is because these notes are rated at the maximum achievable rating,
six notches above the sovereign IDR.
- Long-term asset performance deterioration such as increased
delinquencies or larger defaults. For instance, a combination of
increased defaults and decreased recoveries by 30% each could
trigger downgrades of three notches for CCM 1's class C notes and
five notches for the class D notes.
- For CCM 1's class C notes, a downgrade of the TAB's deposit
rating, as it caps the rating due to excessive counterparty risk
exposure.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The notes already rated 'AAAsf' are at the highest level on
Fitch's scale and cannot be upgraded
- For Granada 1's senior notes, TAB's minimum eligibility ratings
that are compatible with 'AAsf' and 'AAAsf' ratings, complemented
by an improved liquidity position that fully mitigates payment
interruption risk.
- For mezzanine and junior notes on both transactions, CE ratios
increase to fully compensate the credit losses and cash flow
stresses commensurate with higher rating scenarios, all else being
equal. For instance, a combination of decreased defaults and
increased recoveries by 15% each could trigger an upgrade of four
notches for CCM 1's class D notes.
- For CCM 1's class C notes, an upgrade of the TAB´s deposit
rating, as it caps the rating due to excessive counterparty risk
exposure.
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
AyT Caja Granada Hipotecario 1, FTA, AyT Colaterales Global
Hipotecario, FTA Serie CCM I
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pool[s] and the transaction[s]. Fitch has not reviewed the results
of any third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Fitch did not undertake a review of the information provided about
the underlying asset pools ahead of the transaction's AyT Caja
Granada Hipotecario 1, FTA, AyT Colaterales Global Hipotecario, FTA
Serie CCM I initial closing. The subsequent performance of the
transactions over the years is consistent with the agency's
expectations given the operating environment and Fitch is therefore
satisfied that the asset pool information relied upon for its
initial rating analysis was adequately reliable.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
CCM 1's class C notes are linked and capped to the TAB's deposit
rating due to excessive counterparty risk exposure.
ESG Considerations
Granada 1 has an elevated ESG Relevance Score of '5' for
'Transaction Parties & Operational Risk', due to modification of
TAB replacement triggers after the transaction's closing, which has
resulted in a lower rating by at least one category. The initially
defined eligibility trigger of 'F1' as of closing date was modified
to dynamic trigger thresholds in December 2015.
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.
[] Fitch Affirms Ratings on 3 Hipocat Spanish RMBS Deals
--------------------------------------------------------
Fitch Ratings, on Feb. 14, 2025, took multiple rating actions on
three Hipocat Spanish RMBS transactions, including upgrading three
tranches. At the same time, Fitch has resolved the Under Criteria
Observation (UCO) status of all tranches.
Entity/Debt Rating Prior
----------- ------ -----
Hipocat 11, FTA
Class A2 ES0345672010 LT AA+sf Affirmed AA+sf
Class B ES0345672036 LT BB+sf Upgrade B-sf
Class C ES0345672044 LT CCsf Affirmed CCsf
Class D ES0345672051 LT Csf Affirmed Csf
Hipocat 9, FTA
Class A2a ES0345721015 LT AA+sf Affirmed AA+sf
Class A2b ES0345721023 LT AA+sf Affirmed AA+sf
Class B ES0345721031 LT AA+sf Affirmed AA+sf
Class C ES0345721049 LT AA+sf Affirmed AA+sf
Class D ES0345721056 LT Asf Upgrade BBB+sf
Class E ES0345721064 LT Csf Affirmed Csf
Hipocat 10, FTA
Class A2 ES0345671012 LT AA+sf Affirmed AA+sf
Class B ES0345671046 LT AA+sf Upgrade A+sf
Class C ES0345671053 LT CCsf Affirmed CCsf
Class D ES0345671061 LT Csf Affirmed Csf
Transaction Summary
The RMBS transactions are Spanish residential mortgage
securitisations serviced by Banco Bilbao Vizcaya Argentaria, S.A.
(BBB+/Positive/F2).
KEY RATING DRIVERS
European RMBS Rating Criteria Updated: The rating actions reflect
the update of Fitch's European RMBS Rating Criteria on 30 October
2024. This update adopted a non-indexed current loan-to-value (LTV)
approach to derive the base foreclosure frequency (FF) on
portfolios, instead of the original LTV approach applied
previously. The rating actions also take into account the
borrower-level recovery rate cap of 85% under the new criteria,
versus 100% previously. For more information see "Fitch Ratings
Updates European RMBS Rating Criteria; Sets FF and HPD
Assumptions".
When calibrating the portfolio FF rates, Fitch has applied a
transaction adjustment of 1.1x to Hipocat 9 and 1.5x to Hipocat 10
and Hipocat 11, to reflect its general assessment of the pools
based on their historical performance data.
Stable Asset Performance Outlook: The rating actions reflect the
transactions' broadly stable asset performance, in line with its
neutral outlook for eurozone RMBS. These transactions maintain a
low share of loans in arrears over 90 days (at or below 1.5% of
outstanding pool balance as of the latest reporting dates), have
ample seasoning of the securitised portfolios of more than 19
years, and carry a weighted average non-indexed CLTV of less than
40% as of the latest reporting date.
Sufficient Credit Enhancement (CE) Fitch views CE protection as
sufficient to fully compensate for the credit and cash flow
stresses at the respective notes' ratings, which underpins the
upgrades on Hipocat 9 class D notes, as well as Hipocat 10 and
Hipocat 11 class B notes. Fitch expects structural CE to continue
increasing, driven by the mandatory sequential amortisation of the
notes. On the other hand, the zero or negative CE protection on all
three deals' most junior tranches as well as Hipocat 10 and Hipocat
11 class C notes underlines the distressed ratings of these notes.
Portfolio Risky Attributes: All the portfolios are highly
concentrated in the region of Catalonia, with exposures ranging
around 70% of the pool balances. To address regional concentration
risk, Fitch applied higher rating multiples to the base FF
assumption to the portion of the portfolios that exceeds 2.5x the
population within this region relative to the national total, in
line with its European RMBS Rating Criteria.
Ratings Capped (ESG Consideration): The maximum achievable rating
for the three transactions remains at 'AA+sf'. This is due to
unmitigated payment interruption risk in a servicer distress in
light of insufficient liquidity protection, which is not compatible
with 'AAAsf' ratings under Fitch's Counterparty Criteria.
Moreover, the rating of Hipocat 9 class D notes is capped at and
linked to the transaction account bank (TAB) provider, Societe
Generale, 'A' deposit rating (A-/Stable/F1) as the transaction's
cash reserves held at this entity represent the only source of
structural CE for the notes. The sudden loss of these funds would
imply a model-implied downgrade of 10 or more notches in accordance
with Fitch's criteria.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Long-term asset performance deterioration, such as increased
delinquencies or larger defaults, which could be driven by changes
to macroeconomic conditions, interest-rate increases or borrower
behaviour, could lead to downgrades. For instance, a combination of
increased defaults and decreased recoveries by 15% each could
trigger downgrades of up to four notches
- For Hipocat 9 class D notes, a downgrade of the TAB provider´s
deposit rating as the notes are capped by excessive counterparty
risk exposure
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- For Hipocat 9, Hipocat 10 and Hipocat 11, increasing liquidity
protection sufficient to fully mitigate payment interruption risk
could lead to an upgrade of the senior notes to 'AAAsf'
- Stable to improved asset performance driven by stable
delinquencies and defaults would lead to increasing CE and,
potentially, upgrades. For instance, a combination of decreased
defaults and increased recoveries by 15% each could trigger
upgrades of up to two notches across the notes
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Fitch has not reviewed the results of
any third- party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Fitch did not undertake a review of the information provided about
the underlying asset pools ahead of the transactions' closing. The
subsequent performance of the transactions over the years is
consistent with the agency's expectations given the operating
environment and Fitch is therefore satisfied that the asset pool
information relied upon for its initial rating analysis was
adequately reliable.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
Hipocat 9 class D notes ratings are directly linked to their TAB's
long-term deposit rating, due to excessive counterparty
dependence.
ESG Considerations
Hipocat 9, 10 and 11 have an Environmental, Social and Governance
(ESG) Relevance Score of 5 for Transaction & Collateral Structure,
due to unmitigated payment interruption risk at the 'AAAsf' rating
case. This has a negative impact on the credit profile, and is
highly relevant to the ratings, resulting in lower ratings of at
least one notch.
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 W E D E N
===========
SAMHALLSBYGGNADSBOLAGET AB: Fitch Affirms 'CCC+' LongTerm IDR
-------------------------------------------------------------
Fitch Ratings has affirmed six EMEA community-service real estate
companies' ratings, following the update of the EMEA Real Estate
Ratings Navigator, which was part of the revision of Sector
Navigators in the Corporate Rating Criteria, dated 6 December 2024.
All their ratings and Outlooks are unaffected by the changes to
specific Navigator sub-factors and blended factors.
This RAC covers EMEA community-service property companies.
Sector Navigators provide guidance on how Fitch applies the
Corporate Rating Criteria to issuers within the sector that each
specific Navigator addresses. Fitch's EMEA Real Estate: Ratings
Navigator Companion report, dated 12 February 2025, details all the
qualitative and quantitative factors and sub-factors for assessing
these companies.
Key Rating Drivers
For full key ratings drivers for each issuer, see the RACs.
Assura plc
"Fitch Revises Assura's Outlook to Negative; Affirms at 'A-'",
dated August 8, 2024
Public Property Invest ASA
"Fitch Upgrades Public Property Invest to 'BBB'; Rates New EUR300
Million Bond 'BBB'", dated December 9, 2024
Civitas Social Housing PLC
"Fitch Affirms Civitas's IDR at 'A-'/Stable and Senior Secured
Rating at 'A'", dated February 6, 2025
Social Housing REIT PLC
"Fitch Revises Triple Point's Outlook to Negative; Affirms IDR at
'A-'", dated August 1, 2024
SBB - Samhallsbyggnadsbolaget i Norden AB
"Fitch Affirms SBB's IDR at 'CCC'; Removes Rating Watch Negative",
dated January 14, 2025
Samhallsbyggnadsbolaget i Norden Holding AB (publ)
"Fitch Assigns SBB Holding First-Time 'CCC+' IDR; Senior Unsecured
'CCC+'", dated December 20, 2024
Derivation Summary
See relevant RAC for each issuer.
Key Assumptions
See relevant RAC for each issuer.
RATING SENSITIVITIES
See relevant RAC for each issuer.
Liquidity and Debt Structure
See relevant RAC for each issuer.
Issuer Profile
See relevant RAC for each issuer.
Sources of Information
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts 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.
ESG Considerations
See relevant RAC for each issuer.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Civitas Social
Housing Limited LT IDR A- Affirmed A-
senior secured LT A Affirmed A
SBB –
Samhallsbyggnadsbolaget
i Norden AB LT IDR CCC Affirmed CCC
ST IDR C Affirmed C
subordinated LT C Affirmed RR6 C
senior unsecured LT CC Affirmed RR6 CC
senior unsecured ST C Affirmed C
Assura Financing Plc
senior unsecured LT A- Affirmed A-
Public Property
Invest ASA LT IDR BBB Affirmed BBB
senior
unsecured LT BBB Affirmed BBB
Norland Estates
Limited
senior secured LT A Affirmed A
SBB Treasury Oyj
senior unsecured LT CC Affirmed RR6 CC
Samhallsbyggnadsbolaget
i Norden Holding
AB (publ) LT IDR CCC+ Affirmed CCC+
senior unsecured LT CCC+ Affirmed RR4 CCC+
TP REIT PROPCO 2
LIMITED
senior secured LT A Affirmed A
Assura plc LT IDR A- Affirmed A-
senior unsecured LT A- Affirmed A-
Social Housing REIT PLC LT IDR A- Affirmed A-
senior secured LT A Affirmed A
=====================
S W I T Z E R L A N D
=====================
ALLWYN INTERNATIONAL: Fitch Alters Outlook on 'BB-' IDR to Positive
-------------------------------------------------------------------
Fitch Ratings has revised Allwyn International AG's (Allwyn)
Outlook to Positive from Stable, while affirming its Long-Term
Issuer Default Rating (IDR) at 'BB-'. The senior secured debt
issued by Allwyn's fully owned subsidiaries has also been affirmed
at 'BB-' with a Recovery Rating of 'RR4'.
The Outlook revision reflects an improvement in Allwyn's business
profile, with a forecast increase in contributions from its UK
National Lottery (UKNL) business and Kaizen Gaming International
(KGL) to the company's cash flows. This marks a significant
enhancement in both geographical and product diversification, as
well as scale growth. The resulting free cash flow (FCF) should
support deleveraging to below its positive rating sensitivities
after an anticipated leverage peak in 2025.
A consistent financial policy with prospects of sustained
deleveraging remains key for Allwyn's rating trajectory.
Higher-than-forecast amounts of cash up-streamed to Allwyn's
ultimate shareholders or unanticipated large debt-funded expansion
could affect the deleveraging pace and lead to the Outlook being
revised to Stable.
Key Rating Drivers
Business Profile Improvement: The Positive Outlook reflects a
material improvement of Allwyn's scale, as well as its business and
product diversification. This follows the start of its UKNL fourth
license (UK 4NL), the business growth of KGL in Brazil, and the
acquisition of IWG and Camelot operations in the US. Fitch views
these developments as positive for the rating, with geographic
diversification reducing exposure to regulatory or license risks in
any particular market.
Improved product diversification, coupled with the growth of gross
gaming revenue (GGR) share from online activities to 39% in the
three months to September 2024, up from 36% in 2023 and 24% in
2022, should support stronger revenue growth over the medium term
compared with its traditional lottery operations.
Affiliates Contribution, UK Weakness: A substantial portion of
business growth in its forecasts stems from recently added markets,
the UK 4NL, and dividend contributions from a 36.75% stake in KGL
that generates a sizeable portion of its cash flows in Brazil.
Execution risks associated with arresting the losses of UK 4NL, as
well as competitive and regulation risks in the recently regulated
Brazilian market, could affect the credit profile. However, Fitch
notes that Allwyn's performance was in line with budget in all of
its markets in 2024.
Affiliates Dividends Aid Deleveraging: Fitch estimates strong
proportional lease-adjusted net leverage at 3.7x of proportional
EBITDAR for 2024 on the back of estimated higher dividends from
affiliates. In 2025, Fitch expects leverage to temporarily increase
above the positive sensitivity of 4.7x, due to a large cash outlay
for the Italian lottery tender, as well as the planned acquisition
of Novibet that Fitch assumes will be primarily debt-funded.
However, continuous improvement in dividends from equity-owned
operations over 2026-2027 should support deleveraging to 4.2x in
2026 and further to 3.7x in 2027, based on its assumptions.
Financial Policy Key for Rating: Allwyn's FCF before dividends
remains strong, due to the high profitability of its core
businesses and steady dividends from operating companies. While
this is sufficient to service debt and capex, it is exceeded by
forecast high dividend payments and M&As, leading to negative FCF
for 2024 and 2025. This means material deviations from Allwyn's
financial policy, including an established leverage target of 2.5x
and a dividend guidance of EUR200 million-EUR300 million a year,
could affect deleveraging and leave little room for operating
under-performance.
Resilient Core Lottery Business: Over 70% of GGR in 2023 came from
the lottery business (including Camelot UK) that Fitch views as
less volatile in EMEA than gaming and sports betting. Lottery
operators also usually face less regulatory scrutiny, due to fewer
gaming-safety concerns, although licence requirements can be
restrictive for business growth and promotion. Fitch does not
anticipate material regulatory pressure on the lottery business in
Allwyn's core markets, in contrast to online sports betting and
iGaming.
Expansionary Business Growth Forecast: Fitch anticipates moderate
organic growth for the lottery business in EMEA, compared with
iGaming and online sports betting, and therefore assume that Allwyn
will grow primarily through M&As, including recent acquisitions.
Fitch includes in its forecast EUR320 million of acquisitions in
2025, primarily Novibet, followed by bolt-on acquisitions of EUR150
million a year from 2026. Allwyn's digital business, such as
Stoiximan and KGL, will provide additional revenue growth, while
Fitch forecasts EMEA lottery markets to remain broadly flat.
Derivation Summary
Allwyn's EBITDA and EBITDAR margins are strong relative to those of
its gaming peers, such as Flutter Entertainment plc (BBB-/Stable),
Entain plc (BB/Stable) and evoke (B+/Negative), which are among the
five largest iGaming and online sportsbook operators in Europe.
Allwyn has a high proportion of lottery revenue, which is less
volatile and less exposed to regulatory risks, and displays good
geographical diversification across Europe with businesses in the
UK, Greece, the Czech Republic, Austria, Cyprus and Italy. It also
has a presence in the US and Latin America. However, its revenue
diversification is still slightly weaker than the multi-regional
revenue base of Flutter and Entain.
Compared with Betclic Everest Group (BB-/Stable), Allwyn has larger
scale and geographic diversification. This is offset by a less
conservative financial policy and materially higher leverage,
resulting in a similar rating.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
Low-to-mid single-digit organic revenue growth in 2024-2025 on
increased online volume in the core markets of the Czech Republic,
Greece and Austria to varying degrees, depending on local platform
strength. It will also be fueled by revenue growth from the ramp-up
of UKNL operations
Marginal revenue decline in Greece in 2026, conservatively assuming
no instant lottery license extension
Consolidated EBITDA margin improving from 27% in 2025 to above 28%
by 2028
Material dividends from equity-owned businesses due to strong
operational performance in Brazil and stable performance in Italy
(license assumed to be renewed)
Ordinary dividend payments to ultimate shareholders of EUR300
million a year. Extraordinary dividends of EUR269 million in 2024,
and EUR100 million to EUR200 million in 2026-2028, assuming that
surplus cash generated is paid out as dividends
Consolidation of Novibet from 2026
Bolt-on acquisitions of EUR150 million a year at an enterprise
value of 10.0x EBITDA over 2026-2028
Recovery Analysis
Fitch rates the senior secured debt of Allwyn, issued by Allwyn
International AG, Allwyn Entertainment Financing (UK) plc and
Allwyn Entertainment Financing (US) LLC, at 'BB-'/'RR4', at the
same level as Allwyn's IDR. Fitch did not apply any notching of the
instrument rating from the IDR, due to the subordination of senior
secured debt to reduced, but still meaningful levels, of operating
companies' debt, the absence of guarantees and collateral from
operating companies, and a material portion of dividend payments
from subsidiaries to minority shareholders.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Deterioration of operating performance leading to consistently
negative pre-dividend FCF
- A more aggressive financial policy as reflected in proportional
lease-adjusted net debt being consistently above 5.5x of
proportional EBITDAR
- EBITDAR fixed-charge coverage below 2.5x, and gross
dividend/interest at holding company of less than 2.0x on a
sustained basis
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Further strengthening of operations, combined with increased
access to respective cash flow and debt structure simplification
- Sound financial discipline leading to proportional lease-adjusted
net debt trending below 4.5x of proportional EBITDAR
- EBITDAR fixed-charge coverage above 3.0x, and gross
dividend/gross interest at holding company of more than 2.5x on a
sustained basis
Liquidity and Debt Structure
Fitch estimates that Allwyn had a sound liquidity position at
end-2024, with around EUR700 million of Fitch-calculated cash,
including cash balances at operating companies adjusted for
minority stakes. The company had EUR300 million fully available at
end-September 2024 under its 2027 revolving credit facility (RCF),
EUR312 million in RCFs at subsidiaries, and around EUR200 million
of other undrawn facilities.
Debt maturities were well-spread out at end-September 2024, with
only 15% of consolidated debt maturing prior to 2027. In 2027,
around EUR900 million of debt will come due, with major maturities
in the following years. Fitch expects refinancing risk to be
manageable, given Allwyn's demonstrated solid access to debt
capital markets.
Issuer Profile
Allwyn has become the largest European private lottery operator,
holding leading or monopolistic positions in Austria, the Czech
Republic, Greece, the UK and Italy. The company is present in the
US since its acquisition of Camelot LS Group, as an operator of the
Illinois Lottery, and via its 70%-owned IWG, a supplier of online
instant games to lotteries.
Summary of Financial Adjustments
In accordance with Fitch's Corporate Rating Criteria, Fitch uses
proportional consolidation for not fully owned assets to arrive at
lease-adjusted net debt and EBITDAR for its assessment of leverage
metrics used in Rating Sensitivities.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts 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.
ESG Considerations
Allwyn has an ESG Relevance Score of '4' for Group Structure, due
to substantial minority positions in some of its consolidated
assets as well as material contribution of equity-owned businesses
to cash flows, which can lead to high volatility in underlying cash
flows. This has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Allwyn International
AG LT IDR BB- Affirmed BB-
Allwyn Entertainment
Financing (UK) plc
senior secured LT BB- Affirmed RR4 BB-
Allwyn Entertainment
Financing (US) LLC
senior secured LT BB- Affirmed RR4 BB-
===========
T U R K E Y
===========
KONYA METROPOLITAN: Fitch Ups LongTerm IDRs to BB-, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has upgraded Konya Metropolitan Municipality's
Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs)
to 'BB-' from 'B+' and National Long-Term Rating to 'AA+(tur)' from
'AA(tur)'. The Outlooks are Stable.
The upgrade of Konya's ratings reflects the revision of its Risk
Profile to 'Weaker' from 'Vulnerable', as the Turkish sovereign
IDRs (BB-/Stable) are no longer in the 'B' category and therefore
do not correspond to a 'Vulnerable' Risk Profile.
Fitch expects Konya's healthy operating balance will support its
payback ratio to remain low at 4.4x, while its actual debt service
coverage ratio (ADSCR) will slightly improve to 0.8x but remain
below 1x over its conservative rating case. Consequently, its
assessment of its Financial Profile (FP) is unchanged at 'aa'. The
revised Risk Profile and unchanged FP led us to reassess Konya's
Standalone Credit Profile to 'bb+' from 'b+'. Konya's IDRs are now
capped by the Turkish sovereign, which was not the case
previously.
KEY RATING DRIVERS
Risk Profile: 'Weaker'
The risk profile reflects four 'Weaker' key risk factors and two at
'Midrange'. This reflects a high risk that Konya's ability to cover
debt service with its operating balance may weaken unexpectedly
over the rating scenario horizon (2025-2029) due to lower revenue,
higher expenditure or an unexpected rise in liabilities or
debt-service requirements.
Revenue Robustness: 'Midrange'
This assessment reflects Fitch's expectations that Konya's dynamic
and well-diversified local economy will lead to low volatility in
the tax revenue base, with robust tax revenue growth prospects
above national nominal GDP growth. Taxes make up about two-thirds
of the municipality's operating revenue. Under its rating case,
Fitch expects operating revenue to grow slightly above the expected
national nominal GDP CAGR of about 23% to TRY54.4 billion in 2028
(2024: TRY16.2 billion).
Konya's development of a new organisational industrial zone should
attract new businesses and investments. This will support economic
growth by increasing employment and boosting taxes, as evidenced by
the higher-than-average growth of tax revenue in 2024 of around
63%. This is also underpinned by the low unemployment rate of 6.1%
in 2024, in line with the national average.
Revenue Adjustability: 'Weaker'
Nationally pre-defined tax rates constrain Konya's ability to
generate additional revenue. At end-2024, nationally collected tax
revenue, over which it has no tax-setting power, comprised 64.3% of
operating revenue, or 47.4% of total revenue. Local taxes, for
which the municipality has rate-setting power, are a negligible
0.1% of total revenue.
The non-flexible tax-setting powers are compensated by the scope
for asset sales and financial-equalisation transfers as part of the
current transfers received by the metropolitan municipalities.
These accounted for 26.1% and 17.7% of Konya's total revenue,
respectively, in 2024. Asset sales primarily related to land within
industrial zone and residential area, which will help the
municipality generate substantial capital revenue over the medium
term. Fitch expects Konya's capital revenue to average 16% of total
revenue over 2025-2029, far higher than national peers, creating
additional budgetary flexibility.
Non-tax revenue, such as charges and fees, make up about 8.5% of
total revenue, over which Konya does not have full discretion as
these are limited by the central government. Fitch assumes the
additional leeway would cover less than half of what it would
expect to be a reasonable decline in revenues in an economic
downturn.
Expenditure Sustainability: 'Weaker'
This assessment reflects the persistent high inflationary operating
environment, which could erode expenditure control despite Konya's
moderately cyclical and counter-cyclical responsibilities.
Following the government's public sector fiscal austerity measures,
Konya contained its above inflationary adjustments in consolidated
staff salaries, leading opex growth to remain below operating
revenue growth after two years of weak opex control. Still high
projected inflation will pressure Konya's operating spending in
2025-2026, which Fitch expects to decline gradually from 2027
onwards, helping Konya restore control of expenditure growth.
Fitch expects Konya to continue large capital investments of about
29% of total expenditure, in line with the past five-year average,
focusing on development of industrial land expropriation and site
preparation costs) as well as construction of new roads,
restoration of social and cultural facilities, a planned 70MW solar
energy power plant, traffic control centre and ongoing metro line
construction. This will result in large deficits before financing
of about 13% of total revenue for 2025-2029, on average. This is in
line with previous years and will increase the municipality's
borrowings.
Expenditure Adjustability: 'Midrange'
Konya has a lower share of inflexible costs than its international
peers, at less than 70% of total expenditure, which is in line with
its national peers. The municipality can cut or postpone
infrastructure investments, aided by its fairly well-developed
socio-economic infrastructure.
Spending flexibility is offset by Konya's weak record of balanced
budgets due to large capex swings in pre-election periods and its
moderate affordability of reduction due to the existing level of
services and investments. Fitch expects the municipality's spending
flexibility to be reduced by persistent high inflation and its
large investment programme, which Fitch expects to be gradually
restored as inflation declines.
Liabilities & Liquidity Robustness: 'Weaker'
Konya is exposed to moderately low FX risk, with nearly 21% of its
total debt in euros and unhedged. By end-2025, Fitch expects FX
volatility to result in a roughly 3% increase in the municipality's
debt stock. Fitch expects the share of FX debt to increase to about
60% under its rating case, driven by ongoing capex, which will be
financed by new FX borrowing. Interest-rate risk exposure is low,
as 75% of its bank loans were fixed rate as of end-2024. The short
weighted average life of its total debt (1.6 years) results in high
refinancing pressure, as nearly 54% of its debt is due in 2024.
These risks are partly offset by the amortising nature of Konya's
bank loans and additional budgetary flexibility from its expected
capital revenue-generation capacity over the medium term.
Contingent liabilities solely comprise borrowings of its water
affiliate, KOSKI, which is a self-sustaining entity, underpinned by
its strong payback ratio (2024: 1.0x) and its robust ADSCR (2.1x).
Liabilities & Liquidity Flexibility: 'Weaker'
The counterparty risk associated with its domestic liquidity
providers rated below 'BBB-', and the short tenor of loans limit
its assessment to 'Weaker', like other Turkish local and regional
governments (LRG). Konya has good access to national lenders, but
access to international lenders is still evolving. Year-end cash
was fully restricted for the settlement of payables at end-2024.
Turkish LRGs do not benefit from treasury lines or national
cash-pooling, making it challenging to fund unexpected increases in
debt liabilities or spending peaks.
Financial Profile: 'aa category'
Under Fitch's rating case for 2025-2029, Konya's operating balance
will increase to about TRY9.2billion, from TRY4.4billion in 2024,
with direct debt up to TRY40.1 billion in 2029 from TRY8.8 billion
in 2024. This will result in a payback ratio (Fitch's net-adjusted
debt/operating balance) remaining below 5x, in line with a 'aaa' FP
assessment. For secondary metrics, Fitch's rating case projects
that the ADSCR will slightly improve towards 0.8x by 2029, from
0.6x in 2024, but remain weak corresponding to a 'b' assessment.
The fiscal debt burden will remain low below 100%, corresponding to
a 'aa' assessment. The weaker debt service coverage ratio offset
the debt payback ratio to result in an overall Financial Profile of
'aa'.
Derivation Summary
Fitch has revised Konya's SCP to 'bb+' from 'b+', reflecting a
'Weaker' risk profile and 'aa' Financial Profile. The 'bb+' SCP
also factors in Konya's comparison with national and international
peers in the same rating category. Konya's IDRs are now capped by
the Turkish sovereign IDRs and no other rating factors affect the
rating.
Short-Term Ratings
The 'B' Short-Term IDR is the only option mapping to a 'BB-'
Long-Term IDR.
National Ratings
Konya's National Rating is derived from its Long-Term
Local-Currency IDR of 'BB-', which Fitch has upgraded to 'AA+(tur)'
from 'AA(tur)' based on its revised SCP to bb+ from b+.
Key Assumptions
Qualitative Assumptions:
Risk Profile: 'Weaker, Raised with High weight'
Revenue Robustness: 'Midrange, Unchanged with Low weight'
Revenue Adjustability: 'Weaker, Unchanged with Low weight'
Expenditure Sustainability: 'Weaker, Unchanged with Low weight'
Expenditure Adjustability: 'Midrange, Unchanged with Low weight'
Liabilities and Liquidity Robustness: 'Weaker, Unchanged with Low
weight'
Liabilities and Liquidity Flexibility: 'Weaker, Unchanged with Low
weight'
Financial Profile: 'aa, Unchanged with Low weight'
Asymmetric Risk: 'N/A, Unchanged with Low weight'
Support (Budget Loans): 'N/A, Unchanged with Low weight'
Support (Ad Hoc): 'N/A, Unchanged with Low weight'
Rating Cap (LT IDR): 'BB-, Raised with High weight'
Rating Cap (LT LC IDR) 'BB-, Raised with High weight'
Rating Floor: 'N/A, Unchanged with Low weight'
Quantitative assumptions - Issuer Specific
Fitch's rating action is driven by the following assumptions for
reference metrics under its 2025-2029 rating case scenario. These
include their respective changes since the last review and weights
in the rating decision:
- Payback ratio: 4.4x, unchanged with low weight
- Actual coverage ratio: 0.8x, deteriorated with low weight
- Fiscal debt burden: 73.7x, unchanged with low weight
Fitch's through-the-cycle rating case incorporates a combination of
revenue, cost and financial risk stresses. It is based on 2020-2023
published figures and 2024 preliminary results and its expectations
for 2025-2029:
- Operating revenues CAGR 27.4% in 2025-2029 (versus 59.6% yoy for
2020-2024 due to expected high albeit declining nominal GDP growth
of 22.8% on average in 2025-2029);
- Tax revenue 28.8% CAGR in 2025-2029, versus 61.7% CAGR in
2020-2024
- Current transfers 24.0% CAGR in in 2025-2029, versus 60.3% CAGR
in 2020-2024
- Operating expenses CAGR 30.8% in 2025-2029 (versus 69.4% yoy for
2020-2024 due to expected high albeit declining inflation of 21.9%
on average in 2025-2029);
- Negative net capital balance of TRY7.3 billion in 2025-2029
- Apparent cost of debt to be on average 22%, below the average
cost of debt in 2024 due to lower financing costs associated with
the expected new FX debt
- USD/TRY (average) assumptions are based on Fitch's sovereign
estimate for 2025 at USD/TRY39.5, 2026 at USD/TRY45.7, with an
annual additional depreciation of 10% for 2027-2029.
Quantitative assumptions - Sovereign Related
Figures as per Fitch's sovereign data for 2023 and forecast for
2026, respectively:
- GDP per capita (US dollar, market exchange rate): 12,607; 16,978
- Real GDP growth (%): 5.1; 3.7
- Consumer prices (annual average % change): 53.4; 19.4
- General government balance (% of GDP): -5.3; -2.8
- General government debt (% of GDP): 29.3; 26.8
- Current account balance plus net FDI (% of GDP): -3.7; -1.5
- Net external debt (% of GDP): 14.8; 15.5
- IMF Development Classification: EM (emerging market)
- CDS Market-Implied Rating: 'B+'
Liquidity and Debt Structure
Konya's direct debt increased to TRY8.9 billion at end-2024
(end-2023: TRY6.6 billion). Year-end cash (TRY574 million) is
restricted and earmarked for the settlement of payables, leading to
net adjusted debt of TRY8.9 billion. The operating balance was
about TRY4.4 billion, after having been adjusted upwards by nearly
TRY348 million after the re-allocation of spending items between
one-off operating costs and investment-related spending. This is
27% of operating revenue, leading to a robust payback ratio of 2.0x
in 2024, declining from 3.2x in 2023.
Under its rating case, Fitch expects Konya's operating revenue to
increase to about TRY54.0 billion in 2029, underpinned by expected
local nominal GDP CAGR of 23%. Fitch expects the municipality's
debt to increase substantially to TRY40.0 billion by 2029, due to
its capital-intensive investment programme. The operating balance
will remain robust, despite declining to 17% of operating revenue,
leading to a resilient payback ratio below 5x in 2029.
Konya's contingent liabilities are moderate, and solely comprise
the liabilities of its water affiliate, KOSKI, where the
municipality is guarantor of its FX liabilities.
Issuer Profile
Konya has a population of about 2.3 million people, accounting for
2.7% of Turkiye's national population. It has a diverse local
economy. With GDP per capita of TRY246,190, Konya accounts for 79%
of the national average and contributes 2.1% of national GDP.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade of the Turkish sovereign's IDRs, or a downward revision
of Konya's SCP, resulting from a debt payback ratio of more than
nine years on a sustained basis, would lead to a downgrade of
Konya's IDRs.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of the Turkish sovereign's IDRs would lead to an upgrade
of Konya's IDRs, provided that the municipality maintains its debt
payback ratio below 5x under its rating case.
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.
Discussion Note
There was an appropriate quorum at the committee and the members
confirmed that they were free from recusal. It was agreed that the
data was sufficiently robust relative to its materiality. During
the committee no material issues were raised that were not in the
original committee package. The main rating factors under the
relevant criteria were discussed by the committee members. The
rating decision as discussed in this rating action commentary
reflects the committee discussion.
Public Ratings with Credit Linkage to other ratings
Konya's IDRs are capped by the Turkish sovereign.
Entity/Debt Rating Prior
----------- ------ -----
Konya Metropolitan
Municipality LT IDR BB- Upgrade B+
ST IDR B Affirmed B
LC LT IDR BB- Upgrade B+
Natl LT AA+(tur) Upgrade AA(tur)
RONESANS GAYRIMENKUL: Fitch Affirms B+ LongTerm IDR, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has affirmed 11 EMEA retail real estate companies'
ratings, following the update of the EMEA Real Estate Ratings
Navigator, which was part of the revision of Sector Navigators in
the Corporate Rating Criteria, dated December 6, 2024. All their
ratings and Outlooks are unaffected by the changes to specific
Navigator sub-factors and blended factors.
This RAC covers EMEA retail property companies.
Sector Navigators provide guidance on how Fitch applies the
Corporate Rating Criteria to issuers within the sector that each
specific Navigator addresses. Fitch's EMEA Real Estate: Ratings
Navigator Companion report, dated February 12, 2025, and the
updated EMEA Real Estate: Retail Property Companies — Relative
Credit Analysis report, dated February 17, 2025, detail all the
qualitative and quantitative factors and sub-factors for assessing
these companies.
Key Rating Drivers
Castellana Properties Socimi, S.A.
"Fitch Affirms Castellana's IDR at 'BBB-'; Outlook Change to
Positive", dated October 3, 2024
Hammerson plc
"Fitch Revises Hammerson's Outlook to Positive; Affirms IDR at
'BBB' and Senior Unsecured at 'BBB+'", dated August 2, 2024
IGD SIIQ S.p.A.
"Fitch Affirms IGD at 'BBB-'; Outlook Stable", dated November 15,
2024
Klépierre SA
"Fitch Affirms Klépierre's IDR at 'BBB+'/Stable, Senior Unsecured
at 'A-'", dated May 24, 2024
Lar Espana Real Estate SOCIMI, S.A.
"Fitch Downgrades Lar España to 'BB-' on New Owners; Outlook
Stable", dated December 23, 2024
NewRiver REIT plc
"Fitch Affirms NewRiver's IDR at 'BBB'/Stable; Senior Unsecured
'BBB+'", dated September 19, 2024
Ronesans Gayrimenkul Yatirim A.S.
"Fitch Publishes Ronesans Gayrimenkul Yatirim's 'B+' Ratings;
Outlook Stable", dated June 28, 2024
Supermarket Income REIT plc
"Fitch Affirms Supermarket Income REIT plc at 'BBB+'; Outlook
Stable", dated January 29, 2025
Unibail-Rodamco-Westfield SE
"Fitch Affirms Unibail at 'BBB+'; Outlook Stable", dated September
9, 2024
Wereldhave N.V.
"Fitch Publishes Wereldhave N.V.'s 'BBB' Ratings; Outlook Stable",
dated May 21, 2024
VIA Outlets B.V.
"Fitch Affirms VIA Outlets at 'BBB+'; Outlook Stable", dated
December 17, 2024
Derivation Summary
See relevant RAC for each issuer.
Key Assumptions
See relevant RAC for each issuer.
RATING SENSITIVITIES
See relevant RAC for each issuer.
Liquidity and Debt Structure
See relevant RAC for each issuer.
Issuer Profile
See relevant RAC for each issuer.
Sources of Information
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts 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.
ESG Considerations
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
IGD SIIQ S.p.A. LT IDR BBB- Affirmed BBB-
senior unsecured LT BBB- Affirmed BBB-
Klepierre SA LT IDR BBB+ Affirmed BBB+
ST IDR F1 Affirmed F1
senior unsecured LT A- Affirmed A-
senior unsecured ST F1 Affirmed F1
Supermarket Income
REIT plc LT IDR BBB+ Affirmed BBB+
VIA Outlets B.V. LT IDR BBB+ Affirmed BBB+
senior unsecured LT BBB+ Affirmed BBB+
Hammerson plc LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior unsecured LT BBB+ Affirmed BBB+
NewRiver REIT plc LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior unsecured LT BBB+ Affirmed BBB+
Castellana Properties
Socimi, S.A. LT IDR BBB- Affirmed BBB-
Lar Espana Real
Estate SOCIMI, S.A. LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
Unibail-Rodamco-
Westfield SE LT IDR BBB+ Affirmed BBB+
ST IDR F2 Affirmed F2
senior unsecured LT BBB+ Affirmed BBB+
subordinated LT BBB- Affirmed BBB-
senior unsecured ST F2 Affirmed F2
Ronesans Gayrimenkul
Yatirim A.S. LT IDR B+ Affirmed B+
senior unsecured LT B+ Affirmed RR4 B+
WEA Finance LLC
senior unsecured LT BBB+ Affirmed BBB+
Wereldhave N.V. LT IDR BBB Affirmed BBB
senior unsecured LT BBB Affirmed BBB
Hammerson Ireland
Finance DAC
senior unsecured LT BBB+ Affirmed BBB+
Westfield UK &
Europe Finance PLC
senior unsecured LT BBB+ Affirmed BBB+
[] Fitch Affirms BB- LongTerm IDRs on 3 Turkish NBFI Subsidiaries
-----------------------------------------------------------------
Fitch Ratings has affirmed three Turkish non-bank financial
institutions' (NBFI) Long-Term Foreign-Currency (LTFC) and
Local-Currency (LTLC) Issuer Default Ratings (IDRs) at 'BB-'. The
National Ratings of Garanti Finansal Kiralama A.S. (Garanti
Leasing) and Garanti Faktoring A.S. (Garanti Faktoring) have been
affirmed at 'AA(tur)'. The National Rating of Ak Finansal Kiralama
A.S. (Ak Leasing) has been affirmed at 'AA-(tur)'.
All Outlooks are Stable, mirroring those on the companies'
respective parents, Turkiye Garanti Bankasi A.S. (BB-/Stable), and
AKbank T.A.S. (Akbank; BB-/Stable).
Key Rating Drivers
Support-Driven Ratings: The NBFIs' Long-Term IDRs are equalised
with those of their respective parents, reflecting Fitch's view
that they are core and highly integrated subsidiaries.
Fitch is not able to assess the subsidiaries' intrinsic strength as
all three companies are highly integrated within their respective
parents and their franchises rely heavily on their parents. The
ratings are underpinned by potential shareholder support, but
capped at 'BB-' by their respective parents' LTFC IDRs.
Highly Integrated Subsidiaries: The ratings of the NBFI
subsidiaries reflect their close integration within and ultimate
full or majority ownership by their respective parent banks, as
well as the reputational risk of default for their broader groups.
The subsidiaries offer leasing and factoring services in the
domestic Turkish market.
High Support Propensity: The cost of support for the relevant
parent banks would be limited as the subsidiaries are small
compared with their parents and their total assets usually do not
exceed 3% of group assets. This, together with other support
factors listed above, underpins its view of the parents' very high
propensity for support. However, the ability to support is limited
by the respective parents' creditworthiness, as reflected in their
ratings.
National Ratings Stable: All three companies' National Ratings and
their Outlooks are equalised with their respective parents'. Their
affirmation of the National Ratings reflects its view that their
creditworthiness in local currency relative to that of other
Turkish issuers remains unchanged.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The subsidiaries' LTFC and LTLC IDRs are sensitive to a downgrade
of their respective parent's Long-Term IDRs or a deterioration in
the operating environment, which for example could be triggered by
a sovereign downgrade.
A downgrade in the parents' National Ratings would also be likely
mirrored in the respective subsidiaries' ratings.
The ratings could be notched down from their respective parents'
ratings on a material deterioration in the parents' propensity or
ability to support, or if the subsidiaries become materially larger
relative to the respective banks' ability to provide support.
The ratings could also be notched down from their respective
parents' if the subsidiaries' strategic importance is materially
reduced through, for example, weaker operational and management
integration, reduced ownership, or a prolonged period of
under-performance.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of the respective parents' ratings or a revision of the
Outlooks to Positive would be reflected in the subsidiaries'
ratings and Outlooks.
Public Ratings with Credit Linkage to other ratings
All three companies' ratings are linked to the ratings of their
respective parents.
ESG Considerations
All three companies have an ESG Relevance Score of '4' for
Management Strategy in line with their respective parents'
Management and Strategy ESG Relevance Score. This reflects the high
regulatory burden on most Turkish banks. Management's ability to
determine strategy is constrained by regulations and creates an
additional operational burden for the respective parent banks. The
alignment reflects Fitch's view of high integration of the entities
within their respective parent banks'. This has an impact on their
credit profiles and is relevant to their ratings in conjunction
with the other factors.
Unless otherwise stated, the highest level of ESG credit relevance,
if present, is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or to 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
----------- ------ -----
Ak Finansal
Kiralama A.S. LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
LC LT IDR BB- Affirmed BB-
LC ST IDR B Affirmed B
Natl LT AA-(tur)Affirmed AA-(tur)
Shareholder Support bb- Affirmed bb-
Garanti Finansal
Kiralama A.S. LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
LC LT IDR BB- Affirmed BB-
LC ST IDR B Affirmed B
Natl LT AA(tur)Affirmed AA(tur)
Shareholder Support bb- Affirmed bb-
Garanti
Faktoring A.S. LT IDR BB- Affirmed BB-
ST IDR B Affirmed B
LC LT IDR BB- Affirmed BB-
LC ST IDR B Affirmed B
Natl LT AA(tur)Affirmed AA(tur)
Shareholder Support bb- Affirmed bb-
===========================
U N I T E D K I N G D O M
===========================
CANARY WHARF: Fitch Affirms 'B' LongTerm IDR, Outlook Negative
--------------------------------------------------------------
Fitch Ratings has affirmed nine EMEA office and mixed-use real
estate companies' ratings, following the update of the EMEA Real
Estate Ratings Navigator, which was part of the revision of Sector
Navigators in the Corporate Rating Criteria, dated December 6,
2024. All their ratings and Outlooks are unaffected by the changes
to specific Navigator sub-factors and blended factors.
This RAC covers EMEA office and mixed-use property companies.
Sector Navigators provide guidance on how Fitch applies the
Corporate Rating Criteria to issuers within the sector that each
specific Navigator addresses. Fitch's EMEA Real Estate: Ratings
Navigator Companion report, dated 12 February 2025, details all the
qualitative and quantitative factors and sub-factors for assessing
these companies.
Key Rating Drivers
Derwent London plc
"Fitch Affirms Derwent's IDR at 'BBB+'/Stable, Senior Unsecured at
'A-'", dated May 16, 2024
Global Switch Holdings Limited
"Fitch Affirms Global Switch at 'BBB'; Outlook Stable", dated
October 25, 2024
Alexandrite Monnet UK Holdco Plc
"Fitch Assigns Befimmo HoldCo (Alexandrite Monnet) First-Time 'B+'
IDR; Secured 'BB-(EXP)' Rating", dated May 2, 2024
Land Securities PLC
"Fitch Affirms Land Securities' Short-Term IDR at 'F1'", dated
November 22, 2024
Canary Wharf Group Investment Holdings plc
"Fitch Affirms Canary Wharf Group Investment Holdings' IDR at
'B'/Negative; Off Rating Watch Negative", dated December 13, 2024
British Land Company PLC (The)
"Fitch Affirms British Land's IDR at 'A-'/Stable; Senior Unsecured
at 'A'", dated July 24, 2024
Sirius Real Estate Limited
"Fitch Affirms Sirius Real Estate at 'BBB'; Outlook Stable", dated
October 31, 2024
Pinewood Group Limited
"Fitch Revises Pinewood's Outlook to Stable; Affirms IDR at 'BBB-'
and Secured Bonds at 'BBB'", dated March 11, 2024
M&G European Property Fund SICAV-FIS
"Fitch Affirms M&G European Property Fund's IDR at 'A-'/Stable",
dated July 2, 2024
Derivation Summary
See relevant RAC for each issuer.
Key Assumptions
See relevant RAC for each issuer.
RATING SENSITIVITIES
See relevant RAC for each issuer.
Liquidity and Debt Structure
See relevant RAC for each issuer.
Criteria Variation
See Alexandrite Monnet UK Holdco Plc's and M&G European Property
Fund SICAV-FIS's RACs for their respective criteria variations.
Public Ratings with Credit Linkage to other ratings
See relevant RAC for each issuer.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts 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.
ESG Considerations
See relevant RAC for each issuer.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Pinewood Finco plc
senior secured LT BBB Affirmed BBB
London Merchant
Securities Limited
senior secured LT A Affirmed A
Pinewood Group
Limited LT IDR BBB- Affirmed BBB-
senior secured LT BBB Affirmed BBB
Derwent London plc LT IDR BBB+ Affirmed BBB+
senior unsecured LT A- Affirmed A-
Global Switch
Finance B.V.
senior unsecured LT BBB Affirmed BBB
Land Securities PLC ST IDR F1 Affirmed F1
senior unsecured ST F1 Affirmed F1
Alexandrite Monnet
UK HoldCo Plc LT IDR B+ Affirmed B+
senior secured LT BB- Affirmed RR3 BB-
Canary Wharf Group
Investment Holdings
plc LT IDR B Affirmed B
senior secured LT BB- Affirmed RR2 BB-
Derwent London
Capital No. 3
(Jersey) Limited
senior unsecured LT A- Affirmed A-
British Land
Company PLC (The) LT IDR A- Affirmed A-
ST IDR F1 Affirmed F1
senior unsecured LT A Affirmed A
Global Switch
Holdings Limited LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior unsecured LT BBB Affirmed BBB
Sirius Real Estate
Limited LT IDR BBB Affirmed BBB
senior unsecured LT BBB Affirmed BBB
M&G European
Property Fund
SICAV-FIS LT IDR A- Affirmed A-
CURZON MORTGAGES: Fitch Affirms 'B+sf' Rating on Class G Notes
--------------------------------------------------------------
Fitch Ratings has affirmed Curzon Mortgages PLC's notes.
Entity/Debt Rating Prior
----------- ------ -----
Curzon Mortgages PLC
A1 XS2607046054 LT AAAsf Affirmed AAAsf
A2 XS2603650370 LT AAAsf Affirmed AAAsf
B XS2603650537 LT AAsf Affirmed AAsf
C XS2603650883 LT Asf Affirmed Asf
D XS2603651931 LT BBB+sf Affirmed BBB+sf
E XS2603652400 LT BBBsf Affirmed BBBsf
F XS2603652582 LT BB+sf Affirmed BB+sf
G XS2603653556 LT B+sf Affirmed B+sf
X XS2603655098 LT CCCsf Affirmed CCCsf
Transaction Summary
The transaction is a securitisation of UK owner-occupied (OO) loans
originated by Northern Rock Plc, mainly between 2006 and 2008. The
loans were previously securitised under the Chester B1 Plc
transaction.
KEY RATING DRIVERS
Deteriorating Asset Performance: The proportion of loans in arrears
for more than one month has increased to 25.5% from 23.5% since the
previous review, due to high interest rates and cost-of-living
pressures. Should asset performance continue to worsen, with rising
arrears and consequently increases in repossessions, this could
have a negative impact on future model-implied ratings (MIR), which
may lead to downgrades.
Increased CE: Credit enhancement (CE) has continued to build due to
the sequential amortisation of the notes and the transaction's
static general reserve fund, providing increased protection for the
notes to absorb losses from the asset pool. CE for the most junior
rated collateralised notes (class G) has increased to 4.5% from
3.3% at the last review. The build-up of CE somewhat offsets the
deterioration in asset performance.
Higher-Than-Expected Loss Severity: The transaction's reported
lifetime loss severity of 31.6% (as of 31 December 2024) is higher
than that projected by Fitch's Resiglobal Model: UK in its base
case. While high loss severity is likely to be due in part to
negative selection of those properties being repossessed, continued
underperformance may lead to losses exceeding the amount that the
transaction can recover through excess spread, potentially leading
to downgrades.
Fitch conducted a sensitivity analysis by assuming a relative
decrease of 15% to the weighted average recovery rates (WARR)
produced by its asset model, which aligns better with the observed
losses. The result of this analysis suggests downgrades of three
notches or more for the class C, D, E, F and G notes. This is
reflected in their Negative Outlooks.
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 economic environment. Weakening economic performance
is strongly correlated to increasing levels of delinquencies and
defaults that could reduce CE available to the notes.
In addition, unanticipated declines in recoveries could result in
lower net proceeds, which may make certain notes susceptible to
negative rating action depending on the extent of the decline in
recoveries. Fitch found that a 15% increase in the weighted average
foreclosure frequency (WAFF) and a 15% decrease in the WARR
indicate downgrades of two notches for the class A1 and A2 notes,
three notches for the class G notes, four notches downgrade for the
class B and D notes, five notches for the class C notes, and six
notches for the class E and F notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Stable to improved asset performance driven by stable delinquencies
and defaults would lead to increasing CE and potentially upgrades.
Fitch tested an additional rating sensitivity scenario by applying
a 15% decrease in the WAFF and a 15% increase in the WARR. This
would imply upgrades of two notches for the class B and C notes,
three notches for the class D, E and F notes, and five notches for
the class G notes. The class A1 and A2 notes are at their highest
achievable rating and cannot be upgraded.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Prior to the transaction closing, Fitch reviewed the results of a
third party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Curzon Mortgages PLC has an ESG Relevance Score of '4' for Customer
Welfare - Fair Messaging, Privacy & Data Security due the high
proportion of IO loans in legacy OO mortgages, which has a negative
impact on the credit profile and is relevant to the ratings in
conjunction with other factors.
Curzon Mortgages PLC has an ESG Relevance Score of '4' for Exposure
to Social Impacts due to the high proportion of borrowers in the
pool that have already reverted to a floating rate and are
currently paying a high SVR rate. These borrowers may not be in a
position to refinance.
Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This 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.
OSPREY ACQUISITIONS: Fitch Alters Outlook on 'BB+' IDR to Negative
------------------------------------------------------------------
Fitch Ratings has revised midco Osprey Acquisitions Limited's (OAL)
Outlook to Negative from Stable, while affirming its Long-Term
Issuer Default Rating (IDR) at 'BB+' and senior secured debt at
'BBB-'. Fitch has also affirmed Anglian Water Services Financing
Plc's (AWSF) senior secured class A debt at 'A-' with Stable
Outlook.
AWSF's rating reflects its expectation of gradual deleveraging to
66% by the end of the five-year price control period ending March
2030 (AMP8), which is comfortably below its tightened negative
rating sensitivity of 70% in AMP8 (from 72% in AMP7).
The Negative Outlook on OAL reflects its expectation that its net
debt/regulated capital value (RCV) will breach its tightened
negative rating sensitivity of 75% (from 79% in AMP7) in the first
two years of AMP8. Fitch expects shareholders to inject fresh
equity by mid-AMP8 to address this gap. However, failure to
implement proactive measures to strengthen the three-tier capital
structure within 12-18 months would result in a downgrade.
Key Rating Drivers
Equity Injection to Reduce Gearing: Fitch forecasts that about GBP1
billion of fresh equity will be needed at the OAL consolidated
level to reduce net debt/RCV below 75% by the middle of AMP8. Fitch
could tolerate a slight breach for the first two years of AMP8,
provided Fitch has enough visibility on the timing and size of the
equity to support the group's ratings.
Rising Sector Risk: Fitch believes that the final determination has
provided a reasonable outcome for most UK water companies,
especially compared with the draft determination, and is in line
with its expectations. However, Fitch still sees moderately higher
business risk in AMP8, mainly driven by heightened exposure to
environmental risk, increasing public scrutiny, and higher clawback
risk, which is linked to the price control deliverables (PCDs)
mechanism. Further uncertainties may arise from the Cunliffe
review, the most significant regulatory reform since
privatisation.
The sector also faces a heightened risk of fines related to
operational and environmental under-performance, and a pressing
need to rebuild trust with the public, government, and regulatory
bodies. At the same time, Fitch would expect the sector to enhance
its assets to accommodate population growth and extreme weather
conditions.
Tightened Debt Capacity: Fitch has revised the sector's debt
capacity for AMP8, leading to a 2% reduction in net debt/RCV and a
0.1x increase in cash and nominal post-maintenance interest
coverage ratios (PMICRs) for opco Anglian Water Services Ltd (AWS).
Fitch has also tightened debt capacity at OAL, reducing the
negative sensitivity for net debt/RCV by 4%. This reflects the
complex three-tier group structure, and heightened scrutiny on
extracting dividends from AWS, which is mitigated by the expected
moderate gearing.
Adequate Gearing Headroom for AWS: Fitch forecasts adequate net
debt/RCV rating headroom for AWS against its revised rating
sensitivity of 70%. Fitch forecasts net debt/RCV to decline to 66%
by end-AMP8, from 69% at FY24 (financial year-end-March). This
improvement is driven by intercompany funding from OAL and fresh
equity during AMP8. However, Fitch expects OAL's gearing to remain
stable at 77%-78% in AMP8's initial years, due to new debt incurred
to fund AWS, contributing to the Negative Outlook.
Adequate PMICR Headroom for AWS: Fitch forecasts cash and nominal
PMICRs of 1.9x for AWS in AMP8, above its negative rating
sensitivities of 1.5x and 1.8x, respectively. The cash PMICR's
greater headroom is due to around 60% of AWS's total debt being
inflation-linked (IL), which is above the sector average of 52%.
Its ratios assume an average cost of new debt at AWS of 5.6% across
AMP8, slightly better than its sector average. Fitch expects AWS
dividends to cover OAL's interest costs - including that of holdco
Aigrette Financing Limited - by 1.8x on average during AMP8.
Neutral Totex Performance: AMP8 total expenditure (totex) is set at
GBP11.2 billion (2022-2023, real terms), excluding Ofwat's
adjustments, significantly up from GBP6.5 billion in AMP7. Totex
allowances closely match AWS's request (-2%). AMP8 enhancement
totex nearly doubles the AMP7 level, with 74% under the PCD
mechanism. Under this framework, investments need to achieve the
Ofwat benchmarks of allowance and timeline to mitigate the risk of
a clawback. This mechanism ensures that investment funding is
ringfenced, with unspent allowances returned to customers.
Net ODI Penalties Assumed: Fitch forecasts cumulative net in-period
ODI penalties of GBP232 million for AMP8. Since the cash impact of
these penalties materialises with a two-year lag, Fitch expects
cash ODI penalties of GBP267million in AMP8, including amounts from
AMP7's final two years. In AMP8, Fitch expects AWS to incur
penalties mainly for internal and external sewer flooding, and
leakages.
Regulatory Fines Forecast: Fitch forecasts about GBP55 million in
total fines from the Environment Agency and Ofwat as baseline cash
outflows, due to heightened regulatory scrutiny and stricter
controls on wastewater networks. Fitch has assumed fines across all
companies operating wastewater networks and will adjust this
assumption to reflect actual fines or a perceived reduction in
risk, accordingly.
OAL Debt Rating Uplift: OAL's senior secured debt rating benefits
from a one-notch sector uplift, due to its secured status and
high-quality underlying assets. This is despite structural
subordination to AWS's debt and about GBP600 million in negative
mark-to-market (MtM) super-senior swap liabilities at FYE24. The
uplift could be removed if recovery prospects are weaker than
assumed.
Standalone Assessment under PSL: Fitch rates AWS and OAL on a
standalone basis by applying the stronger subsidiary/weaker parent
approach under its Parent and Subsidiary Linkage (PSL) Rating
Criteria. This reflects 'insulated' legal ring-fencing, highlighted
by a well-defined contractual framework, and tight financial
controls imposed by Ofwat, which are designed to support AWS's
financial profile. Fitch views access and control as overall
'porous' as AWS operates with separate cash management and uses a
mixture of external and intercompany funding.
Derivation Summary
AWSF senior secured class A debt (A-/Stable) is higher than
Yorkshire Water Services Finance Limited's (YWS) class A debt
rating of 'BBB+'/Stable. This is due to YWS's class A debt rating
no longer benefitting from a one-notch uplift for sector-specific
recovery, as a result of its large super senior MtM liabilities at
well above 10% of its RCV.
AWSF's class A debt rating is three notches above SW (Finance) I
PLC's (Southern Water) class A debt rating of 'BBB-'/Rating Watch
Negative. Similar to YWS, Southern Water also has substantial super
senior MtM liabilities, which led to the same removal of the
sector-specific recovery uplift, on top of its higher leverage.
Key Assumptions
- Ofwat's final determination financial model used as the principal
source of information
- Neutral totex performance
- Net cash ODI penalties of GBP267 million in FY26-FY30
- Fines totalling GBP55 million from the Environmental Agency or
Ofwat
- Nominal cost of new debt averaging 5.6% at AWS, and 7.6% at OAL
- CPIH averaging 2.8% (starting at 3.3% in FY26 and decreasing to
2.5% by 2030). RPI averaging 3% (starting at 3.5% in FY26 and
trending down to 2.5% by 2030)
- Fresh equity injection into OAL group of companies to meet the
75% net debt/RCV negative rating sensitivity. Based on its current
estimates, this would be around GBP1 billion during AMP8
- Equity from OAL to AWS totalling GBP1.7 billion over AMP8
- Dividends from AWS to OAL averaging about GBP200 million per
annum over AMP8
- No cash tax payments. Pension-deficit recovery payments to total
GBP32 million
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
AWS
- Adjusted total net debt/RCV above 70%, cash PMICR below 1.5x or
nominal PMICR below 1.8x
- Deterioration in operational and environmental performance,
resulting in financial penalties and fines that exceed Fitch's
rating case
- Lower-than-expected equity support or a more aggressive financial
policy
OAL
- Lack of a public commitment to support through equity within the
next 12-18 months, with no clear path to achieving adjusted total
net debt/RCV below 75% by the middle of AMP8
- Adjusted dividend cover (including midco and holdco interest)
below 1.8x
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
AWS
- Adjusted total net debt/RCV below 65%, combined with cash PMICR
above 1.7x and nominal PMICR above 1.9x
OAL
- A rating upgrade in the near term is unlikely. In the longer
term, an upgrade may result from adjusted total net debt/RCV
falling below 71%, along with adjusted dividend cover (including
midco and holdco interest) exceeding 2.5x
Liquidity and Debt Structure
AWS
As of end-September 2024, AWS held about GBP936 million of cash and
cash equivalents (after restricted cash of GBP40 million) and an
undrawn committed facility of GBP1 billion, of which GBP375 million
is maturing in March 2026. Fitch expects sufficient liquidity over
the next 12 months to support debt maturities and negative free
cash flow (FCF) totalling GBP1.3 billion.
In addition, AWS benefits from a committed undrawn debt service
reserve liquidity facility of GBP294 million, sized to cover 12
months of interest payments (including hedge payments), and an
operating expenses and maintenance capex facility of GBP139
million. The facilities are only available on trigger events.
OAL
As of end-September 2024, OAL had about GBP54 million of
unrestricted cash and a GBP334 million undrawn revolving credit
bank facility maturing in FY27. OAL is fully reliant on dividends
from AWS for its cash flow, including for debt service and head
office operational costs. OAL has GBP240 million debt due in March
2026. Fitch expects management to address this refinancing well
before the due date.
Issuer Profile
AWS is an Ofwat-regulated regional monopoly providing water and
wastewater services in the east of England and Hartlepool with an
RCV of GBP10.8 billion at FYE24. Fitch forecasts this to increase
to about GBP17.6 billion by the end of AMP8.
Summary of Financial Adjustments
- Statutory cash interest reconciled with investor reports
- Statutory total debt reconciled with investor reports
- Capex and EBITDA net of grants and contributions
- Cash PMICRs adjusted to include 50% of the accretion charge on IL
swaps with five-year pay-downs, and 100% of the accretion charge on
IL swaps with less than five-year pay-downs
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts 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.
ESG Considerations
OAL has an ESG Relevance Score of '4' for GST Group Structure as
its debt is structurally and contractually subordinated to AWS's
debt, which has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.
OAL has an ESG Relevance Score of '4' for Exposure to Environmental
Impacts, due to the Environment Agency and Ofwat's heightened
regulatory scrutiny and stricter controls over wastewater networks.
This has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Anglian Water (Osprey)
Financing Plc
senior secured LT BBB- Affirmed RR2 BBB-
Anglian Water
Services Financing Plc
senior secured LT A- Affirmed A-
Osprey Acquisitions
Limited LT IDR BB+ Affirmed BB+
senior secured LT BBB- Affirmed RR2 BBB-
STRATTON MORTGAGE 2024-2: Fitch Affirms 'BB+sf' Rating on F Notes
-----------------------------------------------------------------
Fitch Ratings has affirmed Stratton Mortgage Funding 2024-2 plc's
notes.
Entity/Debt Rating Prior
----------- ------ -----
Stratton Mortgage
Funding 2024-2 plc
A XS2777475372 LT AAAsf Affirmed AAAsf
B XS2777475539 LT AA+sf Affirmed AA+sf
C XS2777476776 LT A+sf Affirmed A+sf
D XS2777482741 LT BBB+sf Affirmed BBB+sf
E XS2777485504 LT BBB-sf Affirmed BBB-sf
F XS2777487203 LT BB+sf Affirmed BB+sf
Transaction Summary
The transaction is a securitisation of non-prime owner-occupied
(OO) and buy-to-let mortgages backed by properties in the UK. The
mortgages were predominantly originated by GMAC-RFC, Irish
Permanent Isle of Man, Platform Homeloans and Rooftop Mortgages,
and were previously securitised in the Stratton Mortgage Funding
2021-1 plc transaction. The sponsor is Burlington Loan Management
Designated Activity Company.
KEY RATING DRIVERS
Arrears Stabilisation: One-month plus and three-month plus arrears
were 30.6% and 20.8%, respectively as of the December 2024 payment
date (27.5% and 18.2% based on the February 2024 pool tape at
closing). However, the number of loans in arrears and the notional
amount of loans in arrears has decreased since closing in March
2024, suggesting a stabilisation in arrears build-up.
As loans in arrears are now a higher portion of the collateral
portfolio, due to voluntary and scheduled repayment, Fitch's
weighted average foreclosure frequency (WAFF) has increased.
Despite a decline in the total number of loans in arrears since
closing, the risk of migration to late-stage arrears remains a
significant rating driver.
Ratings Lower than MIRs: The roll risk to late-stage arrears could
increase the WAFF further in future reviews. The notes'
model-implied ratings (MIR) may also be sensitive to lower recovery
rates than those calculated by Fitch's ResiGlobal model. Fitch has
observed lower recovery rates than expected in the non-conforming
sector since 2023.
Fitch has therefore stress its loss assumptions at all ratings
beyond its standard criteria assumptions. This included a 15%
increase in the WAFF and a 15% decrease in the weighted average
recovery rate (WARR). Consequently, the ratings on the class B, C,
D and F notes are up to four notches lower than their MIRs.
Increased Credit Enhancement (CE): CE as built up due to the
sequential amortisation of the notes. CE is provided by the notes'
subordination to each class. The class A notes also receives CE
from a liquidity reserve fund and a general reserve fund. The CE
build-up sufficiently withstands higher stresses, allowing the
notes to be affirmed despite increasing arrears.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The transaction's performance may be affected by adverse changes in
market conditions and the economic environment. Weakening economic
performance is strongly correlated to increasing delinquencies and
defaults that could reduce CE available to the notes.
Additionally, 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% WAFF increase and a 15% WARR
decrease would have no impact on the class A to F notes ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Stable to improved asset performance driven by stable delinquencies
and defaults would lead to increasing CE and, potentially,
upgrades. Fitch found that a 15% decrease in the WAFF and a 15%
increase in the WARR of 15% would lead to upgrades of one notch for
the class B notes, up to three notches for the class C notes, up to
six notches for the class D and E notes, and up to seven notches
for the class 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.
Prior to the transaction closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Stratton Mortgage Funding 2024-2 Plc has an ESG Relevance Score of
'4' for Customer Welfare - Fair Messaging, Privacy & Data Security,
due to the high proportion of interest-only loans in legacy OO
mortgages, which has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.
Stratton Mortgage Funding 2024-2 Plc has an ESG Relevance Score of
'4' for Human Rights, Community Relations, Access & Affordability,
due to a large proportion of the pool containing OO loans advanced
with limited affordability checks, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
URBANFITNESS LONDON: Begbies Traynor Named as Administrators
------------------------------------------------------------
Urbanfitness London Group Ltd was placed into administration
proceedings in the In the High Court of Justice, Business and
Property Courts in Manchester, Insolvency and Companies List (ChD)
Court Number: CR-2025-MAN-000093, and David Hopkins and Paul
Stanley of Begbies Traynor (Central) LLP were appointed as
administrators on Feb. 12, 2025.
Urbanfitness London is a fitness center.
Its registered office is at Cliff Farm House, The Cliff, Lincoln,
LN1 2YQ
The joint administrators can be reached at:
David Hopkins
Paul Stanley
Begbies Traynor (Central) LLP
340 Deansgate
Manchester M3 4LY
Any person who requires further information may contact:
Jake Hinchcliffe
Begbies Traynor (Central) LLP
Email: jake.hinchcliffe@btguk.com
Tel No: 0161 837 1700
*********
S U B S C R I P T I O N I N F O R M A T I O N
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Editors.
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