251203.mbx

251203.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 Wednesday, December 3, 2025, Vol. 26, No. 241 Headlines A R M E N I A ID BANK CJSC: S&P Assigns 'BB-/B' ICRs, Outlook Stable F R A N C E EXPLEO SERVICES: Moody's Cuts CFR to Caa1, Alters Outlook to Stable G E R M A N Y PROTECT HOLDCO: S&P Assigns 'B' ICR, Outlook Stable I R E L A N D APNA PARK: S&P Assigns B- (sf) Rating to Class F Notes DRYDEN 48 EURO 2016: S&P Assigns B- (sf) Rating to F-R-R Notes PENTA CLO 15: S&P Assigns B- (sf) Rating to Class F-R Notes SONA FIOS VI: S&P Assigns B- (sf) Rating to Class F Notes VICTORY STREET II: S&P Assigns Prelim B- (sf) Rating to F Notes I T A L Y CASSIA 2022-1: Moody's Affirms Ba3 Rating on Class C Notes R U S S I A KDB BANK: S&P Raises Issuer Credit Rating to 'BB', Outlook Stable REGION OF FERGANA: S&P Raises ICR to 'BB-' on Resilient Growth U N I T E D K I N G D O M AB DEVELOPMENTS: CG & Co Appointed as Joint Administrators BRAMBLE ENERGY: FRP Advisory Appointed as Joint Administrators HOLBROOK MORTGAGE 2023-1: S&P Affirms 'B- (sf)' Rating on F Notes MERIT GROUP: Interpath Ltd Appointed as Joint Administrators MERIT HEALTH: Interpath Ltd Appointed as Joint Administrators MERIT HOLDINGS: Interpath Ltd Appointed as Joint Administrators RASICO CONSTRUCTION: DFW Associates Appointed as Administrator TULLOW OIL: S&P Cuts LT ICR to 'CCC-' on Debt Restructuring Risk UNIQUE PROPERTY: Begbies Traynor Appointed as Joint Administrators VIDEOONDEMAND365: Leonard Curtis Appointed as Joint Administrators VINYL (GB): Parker Andrews Appointed as Joint Administrators - - - - - ============= A R M E N I A ============= ID BANK CJSC: S&P Assigns 'BB-/B' ICRs, Outlook Stable ------------------------------------------------------ S&P Global Ratings assigned its 'BB-' long-term and 'B' short-term issuer credit ratings to Armenia-based ID Bank CJSC. The outlook is stable. ID Bank is a small institution in Armenia. With assets of Armenian dram (AMD) 476.1 billion (about $1.2 billion) as of June 30, 2025, the bank ranks ninth among Armenian banks and has a market share of about 4.3% in terms of assets. The bank is part of the recently created ID Group, which includes Idram, a major payment system in Armenia. ID Bank and Idram are closely integrated with joint mobile application. S&P bases its assessment of ID Bank on the basis of ID Group's credit profile. ID Bank's digital offering differentiates it from peers. Thanks to its integration with Idram, the bank is one of the market leaders by number of cards issued, including digital issuances. This is largely thanks to its strong digital offering and easy onboarding process. Similarly, while ID Bank has a modest number of point-of-sale terminals, its penetration in settlement services is higher, thanks to the widespread use of Idram's QR code payment mechanism, which covers about 20% of the market. S&P believes ID Group's share in the payment business supports its commission revenue and the stability of its funding base. Strong capitalization positively differentiates ID Bank from peers. S&P said, "We expect our risk-adjusted capital (RAC) ratio to remain at 10.0%-10.5% at the bank level or 13%-14% for the group over the next two years. Higher group capital levels come from relatively low leverage of nonbank assets, primarily Idram LLC. Our forecast implies a rapid expansion of the lending book averaging 25% in 2025-2027, with much of the growth owing to retail products, notably consumer retail as mortgage tax incentives in Yerevan are phased out. We expect the bank to retain broadly similar net interest margins as loan expansion will offset most of the decline in short-term interest rates. We also expect the bank to largely retain sizable revenue from foreign currency conversion operations, supported by the relative granularity of customer base." ID Bank's asset-quality metrics and risk exposures are commensurate with those of its domestic and regional peers. Specifically, the bank has low origination of stage 3 loans in its corporate portfolio, and this, along with the steady performance of the rising retail portfolio, has allowed it to maintain a cost of risk of about 1.2% over the past five years. This is commensurate with the 1.3% average for Armenian banks over the same period. ID Bank's high recourse to real estate collateralization, with a loan-to-value ratio of about 70% on average, and its proactive approach to large borrowers support its risk profile. S&P said, "ID Bank's growth has been strong, but we anticipate that the bank will keep risks under control. While the retail portfolio has been expanding relatively fast--at a compound annual rate of about 25% over the past five years--this is commensurate with the rest of the market. We also view positively the bank's scoring model, which we consider reasonably well-developed and having predictive power commensurate with that of most regional benchmarks. The stable vintage data suggests some portfolio maturity. We also view positively ID Bank's recent shift to salary project loans (about 10% of the loan book as of June 30, 2025, from 6% at year-end 2024) because they appear to pose less of a risk. "We expect funding to stay abundant. ID Bank's funding and liquidity profile received a boost in 2022 as it absorbed deposits trying to exit Russia. Since then, it has maintained a high stable funding ratio--129% at mid-2025. Nonresident funding is material, at about 15% of total deposits, but is rather granular and has been relatively sticky. Despite rapid loan growth over recent years, the coverage of short-term customer deposits by liquid assets has stayed sound at about 44.4% as of mid-2025 compared with 71% at year-end 2022. Positively, ID Bank stresses its buffers against sudden outflows of nonresident money and maintains sufficient cushion to offset this outflow. "The stable outlook on ID Bank reflects our view that the group will maintain strong capitalization over the next 12 months, while asset quality, particularly in the retail segment, will remain solid. "We could downgrade ID Bank over the next 12 months if we see ID Group change its capital strategy, with the RAC ratio falling below 10% because of faster growth in the loan portfolio than we expect or outsized acquisitions. Similarly, we could lower the ratings if we see the quality of the loan portfolio deteriorate, or the bank increase its appetite for more aggressive corporate or retail products. "We are unlikely to take a positive rating action in the next 12 months because this would require a simultaneous improvement of both the sovereign's and bank's creditworthiness." =========== F R A N C E =========== EXPLEO SERVICES: Moody's Cuts CFR to Caa1, Alters Outlook to Stable ------------------------------------------------------------------- Moody's Ratings has downgraded Expleo Services SAS's (Expleo or the company) corporate family rating to Caa1 from B3 as well as its probability of default rating to Caa1-PD from B3-PD. Concurrently, Moody's have downgraded the ratings on the backed senior secured bank credit facilities to Caa1 from B3. The outlook has been changed to stable from negative. "The rating action reflects the deterioration in the company's financial metrics over the course of 2025 as well as uncertainty regarding the timing, extent and sustainability of any improvement in financial performance going forward" said Fabrizio Marchesi, a Moody's Ratings Vice President and lead analyst for the company. "Although Moody's assume that Expleo will successfully address its upcoming 2027 debt maturities on a timely basis, the rating reflects Moody's view that there is significant execution risk associated with improving the company's financial metrics to levels which ensure a sustainable capital structure over the long-term", added Mr. Marchesi. Governance considerations were a key rating driver for today's rating action. This reflects the appetite for high leverage of the company's shareholders (Financial Strategy and Risk Management) as well as Expleo's weak historical financial performance (Management Credibility and Track Record), which are captured under Moody's General Principles for Assessing Environmental, Social and Governance Risks methodology for assessing ESG risks. RATINGS RATIONALE Expleo's financial performance has been under pressure in 2025, leading to elevated leverage, weak interest coverage and ongoing free cash flow burn. The main reason for this has been the ongoing economic challenges faced by some of Expleo's clients (predominantly in the automotive sector), which has resulted in project delays, price re-negotiations and postponement of projects. Although management has successfully delivered a comprehensive cost restructuring program, this has led to significant implementation costs. Moody's consider that the likelihood of a material and sustained recovery in demand for Expleo's services is not clear, given the historical variability of the company's revenue base. Based on Expleo's long-term performance since 2019, Moody's believe that there is significant execution risk related to the company's ability to improve revenue and profitability to levels that will allow it to consistently generate positive Moody's-adjusted free cash flow (FCF), over a multi-year period, and ensure a sustainable capital structure. Expleo's revenue fell 9% year-over-year in the 9 months to September 30, 2025 and, although cost savings have cushioned the impact of a weaker top-line, company adjusted EBITDA (pre-IFRS 16) fell 20% year-over-year over the same period. Moody's expects a stabilization in revenue on a year-over-year basis in the fourth quarter and forecast company-adjusted EBITDA (post-IFRS 16) of EUR127 million in full year 2025 (or EUR100 million pre-IFRS 16). For comparison, Expleo recorded EUR148 million of company-adjusted EBITDA (post-IFRS 16) in 2024. Taking account of Moody's estimate of non-recurring costs of around EUR37 million as well as factoring in other Moody's standards adjustments, Moody's forecast Moody's-adjusted EBITDA of EUR92 million for 2025, which implies Moody's-adjusted leverage of 10x as of December 31, 2025 and Moody's-adjusted EBITA/interest of 0.9x. Moody's also expect Expleo's Moody's-adjusted free cash flow (FCF) to remain negative for the fifth consecutive year, at around EUR33 million. Moody's consider these metrics to be weak and consistent with a Caa1 rating. Going forward, Moody's assume year-over-year revenue growth in the low single-digits percentages and company adjusted EBITDA (post-IFRS 16) of EUR130 million in 2026. Thanks mainly to a reduction in non-recurring items to EUR17.5 million (from an estimated EUR37 million in 2025), Moody's forecast that Moody's-adjusted EBITDA will rise to EUR114 million, with Moody's-adjusted leverage improving to a still elevated 8.1x, Moody's-adjusted EBITA/interest of 1.3x and the company continuing to record negative Moody's-adjusted FCF of EUR16 million. More generally, given the cyclical nature of Expleo's business, Moody's consider that there is uncertainty as to whether the company can materially outperform the average level of EBITDA generated historically on a sustainable basis in the future. As a result, Moody's expect that the company will struggle to generate positive Moody's-adjusted FCF going forward, which suggests that its current capital structure may prove unsustainable over time. Historically, Expleo burned EUR104 million of Moody's-adjusted FCF cumulatively in the six year period from 2019 to 2024 and recorded negative Moody's-adjusted FCF even in years of record company-adjusted EBITDA such as 2023 and 2024. ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS Governance was a key rating driver in the rating action. Financial Strategy and Risk Management as well as Management Credibility and Track Record are governance considerations under Moody's General Principles for Assessing Environmental, Social and Governance Risks methodology. Expleo has demonstrated weak financial metrics for several years, and has recorded persistently negative Moody's-adjusted FCF generation as well as an increase in outstanding debt quantum since 2019. Moody's consider that this indicates a tolerance for elevated leverage. Based on management's historical track record, Moody's believe that there is significant execution risk related to the company improving its financial metrics, particularly Moody's-adjusted FCF generation, to levels which will ensure a sustainable capital structure going forward. For these reasons, the overall exposure to governance risks (Issuer Profile Score or IPS) was changed to G-5, from G-4, and Expleo's Credit Impact Score was changed to CIS-5, from CIS-4. LIQUIDITY Moody's consider Expleo's liquidity to be weak, consisting of a cash balance of EUR56 million as of September 30, 2025 and only EUR10 million of availability under the EUR115 million RCF. Moody's assessment takes into account of the significant seasonality in the company's cash flows, which are driven by large intra-quarter working capital movements, as well as Moody's expectation of ongoing negative free cash flow. STRUCTURAL CONSIDERATIONS The backed senior secured bank credit facilities are rated at the same level as the CFR reflecting their pari passu ranking and upstream guarantees from operating companies. They benefit from first ranking transaction security over shares, bank accounts and intragroup receivables of material subsidiaries. Moody's typically view debt with this type of security package to be akin to unsecured debt. However, they benefit from upstream guarantees from operating companies accounting for at least 80% of consolidated EBITDA. RATING OUTLOOK The stable outlook assumes that Expleo will successfully address the upcoming maturity of its revolving credit facility (RCF) expiring in March 2027 and term loan due in September 2027. It also reflects Moody's expectation that the company will gradually improve its operating performance, such that credit metrics gradually improve over the next 12-18 months, and that the company will maintain sufficient cash and availability under the RCF going forward. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive pressure on the ratings is unlikely in the near-term, but could develop over time if operating performance improves considerably, such that the company demonstrates a sustained track record of keeping Moody's-adjusted debt/EBITDA below 6.5x and Moody's-adjusted EBITA/interest above 1.5x, as well as consistently generating positive Moody's-adjusted free cash flow. An upgrade would also require an improvement in the company's liquidity to levels that Moody's consider to be adequate. The ratings could be downgraded if the company does not successfully address its upcoming 2027 debt maturities on a timely basis, if liquidity concerns arise or if operating performance does not improve over time. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPANY PROFILE Expleo Services SAS, headquartered in Paris, France, is a leading European engineering, technology and consulting service provider specializing in developing complex products, optimizing manufacturing processes, and ensuring the quality of information systems. Expleo offers services in a wide range of fields including AI engineering, digitalization, hyper-automation, cybersecurity and data science. It has a global footprint, with 17,500 highly-skilled experts across 30 countries in the aerospace, automotive, transportation, and financial services sectors. It generated revenue of EUR1.4 billion and company adjusted EBITDA (pre-IFRS 16) of EUR122 million in 2024. ============= G E R M A N Y ============= PROTECT HOLDCO: S&P Assigns 'B' ICR, Outlook Stable --------------------------------------------------- S&P Global Ratings assigned its 'B' long-term issuer credit rating to Protect HoldCo GmbH (the parent of uvex group, which will produce consolidated accounts) and its 'B' issue rating to the EUR400 million TLB due 2032. The stable outlook reflects S&P's expectations that uvex will maintain leverage at 5.0x-5.5x in fiscal 2026 (ending July 31, 2026), S&P Global Ratings-adjusted funds from operations (FFO) cash interest coverage comfortably above 2.0x, and annual free operating cash flow (FOCF; after leases) of EUR19 million-EUR23 million. Warburg Pincus (the financial sponsor) closed the acquisition of a controlling stake in the Germany-based global player in safety personal protective equipment uvex group. The existing family shareholders will retain a significant minority stake. Uvex has issued a EUR400 million senior secured term loan B (TLB) due in 2032. The transaction includes an equity injection, which mainly consists of preferred shares. Total expected cash proceeds will fund the purchase consideration (including transaction fees) and refinance the existing capital structure. Uvex has overall good diversification in terms of product categories and customers, with a focus on premium products. For fiscal 2024, uvex generated EUR661.2 million in sales with an S&P Global Ratings-adjusted EBITDA of EUR85.9 million. Uvex benefits from good market positions in the fragmented personal protective equipment (PPE) industry. The global PPE industry is very fragmented, despite the presence of large multinationals including 3M Co. (BBB+/Stable/A-2), Ansell Ltd. (not rated), and PIP/Gloves Buyer Inc. (B-/Positive/--). Uvex is the PPE market leader in the DACH region (Germany, Austria, and Switzerland), with an estimated average market share of about 10%. In the U.S. (about 21% of total sales 2024), the group has an estimated market share of about 5% within its core gloves segment. In our view, the PPE industry has positive underlying growth fundamentals, including the tightening of safety standards in mature markets, product premiumization, and the increased use of PPE equipment per user. Over the next five years, we expect the overall industry to have a 3%-5% compound annual growth rate (CAGR), although we expect trends to vary by product category and end markets. The group's strong brand reputation is mainly supported by its premium product offering with loyal customer relationships. S&P said, "Of uvex's PPE products, 50%-60% are manufactured in-house, which, in our view, enables the group to have better flexibility in its supply chain, coupled with higher control of the quality of the manufacturing process and, hence, of the final products. Reflecting this, 60%-70% of uvex's PPE revenue is customized or premium (customized accounts for 30%, which compares favorably with that of competitors), which compares positively with the estimated 50% for its competitors. We think the quality and reliability of the products are essential differentiators in the protective apparel industry, where safety is of the utmost importance for end customers." The group's quality reputation results in longstanding relationships with customers (mainly distributors), with the top 60 having used uvex's brands for more than three years. The company has a diverse customer base and solid internal sales network. About 76% of uvex sales are through distributors, which are the group's main customers, with the remaining being directly to end customers (business-to-business and, to a small extent, business-to-customer through its online channel), particularly in the DACH region, where 50% of the region's sales are direct. In this sense, the group's top 10 distributors account for 25%-30% of total revenue. Positively, behind the group's distributor network, there are many end customers. In fact, uvex's top three direct end customers account for less than 5% of total revenue. The group has an internal sales representative workforce of about 290 employees with offices in more than 20 countries, which influence distributors' assortment choices. Uvex's revenue base is smaller than for other global competitors and its business exhibits some geographical and end-market concentration. The revenue base of about EUR661 million in 2024 is about 22% lower than that of one of its U.S.-based direct competitor Gloves Buyer and substantially lower than other larger global competitors such as 3M or Ansell. In addition, despite producing and distributing in many countries and regions globally, about 50% of the group's revenue comes from the DACH region, with Germany alone accounting for 40%. Uvex is also concentrated in cyclical and challenging end markets (such as auto, oil and gas, and construction), with about 50% of its PPE revenue in Europe from the auto and machinery end markets. In particular, the main end market in Europe for uvex includes auto (accounting for about 25% of PPE sales 2024 in Europe). The European auto sector is facing a challenging industry environment; this aspect, together with industrial automation process and the general trend toward some delocalization of European manufacturing capabilities (especially toward southeast Asian countries) could put additional pressure on volume for PPE products in Europe. S&P said, "However, we expect the group to gain further exposure to less cyclical and growing end markets, including defense, fire and rescue, and transportation. We also expect uvex to gradually reduce revenue exposure to the DACH region over the medium term as it accelerates the expansion into the U.S." S&P said, "We expect some gradual improvement in profitability, although it is lower than that of some direct peers. In our view, the company has demonstrated some resilience in its operating performance, with the group's positive overall track record in terms of revenue growth (with a CAGR of 5% from 2006-2025) while maintaining gross margins of 48%-54%. Looking at comparable EBITDA margins (including lease adjustments, and excluding capitalized research and development [R&D] costs, one-off restructuring costs linked to the sports division, and the Russia contribution), the company posted a margin close to 12% in 2024, which is below that of some direct peers. This is mainly due to the underuse of its own manufacturing facilities (particularly in the sport protective equipment [SPE] division), in-house production process mainly taking place in high-cost countries, and loss-making performance of the group's sport division. For fiscal 2025, we expect an S&P Global Ratings-adjusted EBITDA margin of about 11%, affected by tariffs, relatively higher staff costs, and some ongoing restructuring initiatives (including warehouse closure, and supply chain optimization). We expect the margin to approach 12%-13% in 2026 and 2027 thanks to the benefits of optimization measures, which include some outsourcing of the PPE division's labor-intensive manufacturing steps and footprint optimization with centralization of warehouses. In addition, we expect the sports division's profitability to turn slightly positive, while we expect a positive geographical mix contribution, owing to higher growth in the U.S. market. We also expect uvex to gain further market share in the margin-accretive U.S. by introducing more products to the region's offering--which currently consists mainly of gloves--such as footwear and eyewear". However, the group's growth strategy entails execution risks. In particular, risks relate to the highly competitive landscape in the U.S., the cost pass-through of tariff-related expense, and synergies from its restructuring plan. The sport division (20% of total sales 2024) has been loss-making for several years, although the company expects it will contribute positively to the group's EBITDA from 2026 and thereafter. Uvex operates in the SPE segment in cycling and winter sport with focus on bike helmets, ski equipment, and sports eyewear. This division focuses on the DACH region (more than 70% of its sales) and over the past few years, posted flattish performance in terms of sales growth, while it was loss-making in terms of EBITDA. Therefore, management restructured this division in fiscal years 2023-2025 (with total one-off restructuring costs of EUR20 million-EUR25 million) with the decision to fully outsource its manufacturing activities (buy-only strategy). S&P said, "Management estimates these new conditions will yield a 25% savings over the previous in-house production system. As a result, we expect the division's margins to gradually improve in 2026, although we estimate EBITDA margin for this division at 3%-4%. We understand the sports division remains core to the group's strategy, boosting brand awareness and visibility--particularly in the DACH region." According to management, brands within the sports division have an iconic and heritage status, creating a supportive ecosystem to boost the safety division, coupled with ongoing synergies in terms of innovation and R&D focus. S&P said, "We expect uvex to generate positive recurring cash flow, with annual FOCF (after leases) of EUR21 million-EUR28 million in 2026-2027. We anticipate annual capital expenditure (capex) at 3.0%-3.5% of 2026-2027 (down from 4.8% in 2024) due to the phasing out of the restructuring plan's implementation. We assume moderate working capital outflows to support organic top-line growth, especially in the U.S. market. "We forecast the group to post adjusted debt to EBITDA of about 5.5x at year-end 2026 (post-transaction), with gradual deleveraging thereafter. We expect the company to deleverage to 5.0x or below in 2027, owing to a moderate increase in EBITDA thanks to organic revenue growth and cost optimization initiatives. Total adjusted debt post-transaction will include a EUR400 million TLB, about EUR16 million of real estate loans, EUR30 million-35 million in operating leases, and about EUR18 million of net pension liabilities. Uvex's new capital structure includes preference shares and a shareholder loan, which we treat as equity, according to our criteria. "The stable outlook reflects our expectation that uvex will expand its sales by 5%-7% over the next couple of years with some moderate improvements in its adjusted EBITDA margin at 12%-13%, underpinned by higher growth in U.S. market (enlarging product offering), benefits from restructuring in the sports division, and some pricing actions. We estimate this will translate into adjusted debt to EBITDA of 5.0x-5.5x and positive annual FOCF (after leases) of EUR19 million-EUR23 million in 2026. "We could lower the rating on uvex if its S&P Global Ratings-adjusted debt to EBITDA approaches or passes 7x with limited prospects of deleveraging, or in case the company is unable to generate positive recurring FOCF. Under this scenario, the company's FFO cash interest coverage ratio will likely deteriorate below 2x. This could happen if the penetration strategy in the U.S. is not successful due to aggressive competition and material volume decline in the DACH market, translating into meaningful deteriorations of profitability and market share. "We could consider an upgrade if we see that uvex increases its product diversification and the size of its operations, while posting profitability levels that outperform our forecast. This should be in tandem with a track record of the adjusted debt to EBITDA ratio being well below 5x sustainably, alongside a clearly stated commitment to maintain a debt-leverage ratio at that level or below, and good recurring FOCF after leases." ============= I R E L A N D ============= APNA PARK: S&P Assigns B- (sf) Rating to Class F Notes ------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Apna Park CLO DAC's class A, B, C, D, E, and F notes. The issuer has also issued unrated subordinated notes. The transaction has a 1.50-year noncall period and the portfolio's reinvestment period ends 4.55 years after closing. Under the transaction documents, the rated notes pay quarterly interest unless there is a frequency switch event. Following this, the notes will switch to semiannual payment. The ratings assigned to the notes reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,741.84 Default rate dispersion 519.43 Weighted-average life (years) 4.78 Obligor diversity measure 165.25 Industry diversity measure 22.08 Regional diversity measure 1.34 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 CCC rated assets ('CCC+','CCC', and 'CCC-') (%) 1.50 Number of performing obligors 189 Portfolio weighted-average rating derived from S&P's CDO evaluator B Actual 'AAA' weighted-average recovery (%) 35.82 Actual weighted-average coupon (%)* N/A Actual weighted-average spread (net of floors, %) 3.60 *No fixed rate assets in the closing portfolio. N/A--Not applicable. The portfolio is well diversified at closing, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. S&P said, "Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow collateralized debt obligations." The transaction includes an amortizing reinvestment target par amount, which is a predetermined reduction in the value of the transaction's target par amount unrelated to the principal payments on the notes. This may allow for the principal proceeds to be characterized as interest proceeds when the collateral par exceeds this amount, subject to a limit, and affect the reinvestment criteria, among others. S&P said, "This feature allows some excess par to be released to equity during benign times, which may lead to a reduction in the amount of losses that the transaction can sustain during an economic downturn. Hence, in our cash flow analysis, we assumed a starting collateral size of less than target par (i.e., the EUR400 million target par minus the EUR7.5 million maximum reinvestment target par adjustment amount)." S&P said, "In our cash flow analysis, we also modeled the actual weighted-average spread of 3.60% and the covenanted weighted-average coupon of 4.00%, and the actual weighted-average recovery rates for all rated notes. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on June 15, 2030, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, as long as the initial ratings are maintained. "Following the application of our structured finance sovereign risk criteria, the transaction's exposure to country risk is limited at the assigned ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our criteria. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure is bankruptcy remote, in line with our legal criteria. "The operational risk associated with key transaction parties (such as the collateral manager) that provide an essential service to the issuer is in line with our operational risk criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our ratings are commensurate with the available credit enhancement for the class A to F notes. Our credit and cash flow analysis indicates that the class B to E notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will have a reinvestment period, during which the transaction's credit risk profile could deteriorate, we have capped our assigned ratings on the notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class F notes could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria and assigned a 'B- (sf)' rating to this class of notes. The ratings uplift for the class F notes reflects several key factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P said, "Our model generated break-even default rate at the 'B-' rating level of 24.95% (for a portfolio with a weighted-average life of 4.78 years), versus if we were to consider a long-term sustainable default rate of 3.2% for 4.78 years, which would result in a target default rate of 15.30%." -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' rating. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A to E notes in four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Apna Park CLO DAC is a European cash flow CLO securitization of a revolving pool, comprising primarily euro-denominated senior secured loans and bonds. Blackstone Ireland Ltd. manages the transaction. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 248.00 38.00 3mE +1.29% B AA (sf) 42.00 27.50 3mE +1.75% C A (sf) 24.00 21.50 3mE +2.10% D BBB- (sf) 30.00 14.00 3mE +2.75% E BB- (sf) 19.00 9.25 3mE +5.20% F B- (sf) 11.00 6.50 3mE +7.90% Sub. Notes NR 31.325 N/A N/A *The ratings assigned to the class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month Euro Interbank Offered Rate (EURIBOR) when a frequency switch event occurs. NR--Not rated. N/A--Not applicable. 3mE--Three-month EURIBOR. Sub. notes--Subordinated notes. DRYDEN 48 EURO 2016: S&P Assigns B- (sf) Rating to F-R-R Notes -------------------------------------------------------------- S&P Global Ratings assigned preliminary credit ratings to Dryden 48 Euro CLO 2016 DAC's class A-R-R to F-R-R notes. At closing, the issuer will have unrated subordinated notes outstanding from the existing transaction. This transaction is a reset of the already existing transaction that closed in October 2019. The existing classes of notes will be fully redeemed with the proceeds from the issuance of the replacement notes on the reset date. The ratings on the original notes will be withdrawn on the reset date. The portfolio's reinvestment period will end approximately 5.1 years after closing, while the non-call period will end 2.0 years after closing. The preliminary ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which S&P expects to be bankruptcy remote. -- The transaction's counterparty risks, which S&P expects to be in line with itsr counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2805.93 Default rate dispersion 553.08 Weighted-average life including reinvestment (years) 5.08 Obligor diversity measure 116.08 Industry diversity measure 26.02 Regional diversity measure 1.21 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.52 Target 'AAA' weighted-average recovery (%) 37.07 Target weighted-average coupon (%) 3.59 Target weighted-average spread (net of floors; %) 3.93 Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. Rating rationale S&P said, "We expect the portfolio to be well-diversified at closing, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the actual weighted-average spread (3.93%), and the actual weighted-average coupon (3.59%) as indicated by the collateral manager. We have assumed the targeted weighted-average recovery rates for all rated notes (37.07% at the 'AAA' rating level). We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-1-R-R to E-R-R notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the CLO will be in its reinvestment period from closing until Jan. 15, 2031, during which the transaction's credit risk profile could deteriorate, we have capped the assigned preliminary ratings. "For the class F-R-R notes, our credit and cash flow analysis indicates that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' preliminary rating on this class of notes. The ratings uplift for the class F-R-R notes reflects several key factors, including: -- The class F-R-R notes' available credit enhancement, which is in the same range as that of other CLOs we have rated and that have recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 28.55% (for a portfolio with a weighted-average life of 5.1 years), versus if it was to consider a long-term sustainable default rate of 3.2% for 5.1 years, which would result in a target default rate of 16.32%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F-R-R notes is commensurate with the assigned 'B- (sf)' preliminary rating. "Under our structured finance sovereign risk criteria, we expect the transaction's exposure to country risk to be sufficiently mitigated at the assigned preliminary ratings. "At closing, we expect the transaction's documented counterparty replacement and remedy mechanisms to adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "We expect the transaction's legal structure and framework to be bankruptcy remote, in line with our legal criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our preliminary ratings are commensurate with the available credit enhancement for the class A-R-R to F-R-R notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also included the sensitivity of the ratings on the class A-R-R to E-R-R notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category--and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met--we have not included the above scenario analysis results for the class F-R-R notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit or limit assets from being related to certain industries. Since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Preliminary ratings Prelim. Prelim. amount Class rating* (mil. EUR) Sub (%) Interest rate§ A-R-R AAA (sf) 248.00 38.00 Three/six-month EURIBOR plus 1.30% B-1-R-R AA (sf) 27.00 27.50 Three/six-month EURIBOR plus 2.00% B-2-R-R AA (sf) 15.00 27.50 4.80% C-R-R A (sf) 24.00 21.50 Three/six-month EURIBOR plus 2.40% D-1-R-R BBB (sf) 28.00 14.50 Three/six-month EURIBOR plus 3.60% D-2-R-R BBB- (sf) 3.00 13.75 Three/six-month EURIBOR plus 4.50% E-R-R BB- (sf) 17.00 9.50 Three/six-month EURIBOR plus 5.93% F-R-R B- (sf) 12.00 6.50 Three/six-month EURIBOR plus 8.41% Sub. Notes NR 43.00 N/A N/A *The preliminary ratings assigned to the class A-R-R, B-1-R-R, and B-2-R-R notes address timely interest and ultimate principal payments. The preliminary ratings assigned to the class C-R-R to F-R-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. PENTA CLO 15: S&P Assigns B- (sf) Rating to Class F-R Notes ----------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Penta CLO 15 DAC's class A loan and class A-R, B-R, C-R, D-R, E-R, and F-R notes. The issuer had EUR26.73 million of outstanding unrated subordinated notes at closing, and issued an additional EUR1.65 million of subordinated notes and EUR3.50 million class Z notes. This is a European cash flow CLO transaction, securitizing a pool of primarily syndicated senior secured loans and bonds. The portfolio's reinvestment period will end approximately 5.1 years after closing. This transaction is a reset of the already existing transaction that closed in December 2023. The existing classes of notes and loan were fully redeemed with the proceeds from the issuance of the replacement notes and loan on the reset date. The ratings on the original notes and loan were withdrawn on the reset date. Under the transaction documents, the rated notes and loan pay quarterly interest unless there is a frequency switch event. Following this, the notes and loan will switch to semiannual payments. The ratings assigned to Penta CLO 15's notes and loan reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes and loan through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,741.25 Default rate dispersion 549.52 Weighted-average life (years) 4.63 Weighted-average life (years) extended to cover the length of the reinvestment period 5.13 Obligor diversity measure 139.85 Industry diversity measure 20.36 Regional diversity measure 1.26 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.75 Target 'AAA' weighted-average recovery (%) 34.83 Target weighted-average spread (net of floors, %) 3.67 Target weighted-average coupon (%) 4.85 Rationale The portfolio is well diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, S&P has conducted our credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we modeled a target par of EUR400 million. We also modeled the target weighted-average spread (3.67%), the target weighted-average coupon (4.85%), and the target weighted-average recovery rates calculated in line with our CLO criteria for all classes of notes and loan. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on Jan. 15, 2031, the collateral manager may substitute assets in the portfolio as long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes and loan. This test looks at the total amount of losses that the transaction can sustain--as established by the initial cash flows for each rating--and compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Partners Group CLO Advisers LP manages the CLO, and the maximum potential rating on the liabilities is 'AAA' under our operational risk criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the assigned ratings are commensurate with the available credit enhancement for the class A loan and class A-R to F-R notes. Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R to D-R notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from closing--during which the transaction's credit risk profile could deteriorate--we have capped our ratings on the notes. "For the class F-R notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes." The ratings uplift for the class F-R notes reflects several key factors, including: -- The class F-R notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P said, "Our model generated break-even default rate at the 'B-' rating level of 25.84% (for a portfolio with a weighted-average life of 5.13 years), versus if we were to consider a long-term sustainable default rate of 3.2% for 5.13 years, which would result in a target default rate of 16.42%." -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F-R notes is commensurate with the assigned 'B- (sf)' rating. "Given our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for all the rated classes of notes and loan. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also included the sensitivity of the ratings on the class A loan and class A-R to E-R notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R notes." Environmental, social, and governance S&P said, "We regard the transaction's exposure to environmental, social, and governance (ESG) credit factors as broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental and social credit factors is viewed as below average, while governance credit factors are average. For this transaction, the documents prohibit or limit certain assets from being related to certain activities. Accordingly, since the exclusion of assets from these activities does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Penta CLO 15 is a European cash flow CLO securitization of a revolving pool, comprising mainly euro-denominated leveraged loans and bonds. The transaction is a broadly syndicated CLO managed by Partners Group CLO Advisers LP. Ratings Amount Credit Class Rating* (mil. EUR) Interest rate§ enhancement (%) A-R AAA (sf) 170.40 3/6-month EURIBOR plus 1.28% 38.00 A loan AAA (sf) 77.60 3/6-month EURIBOR plus 1.28% 38.00 B-R AA (sf) 41.00 3/6-month EURIBOR plus 1.75% 27.75 C-R A (sf) 25.00 3/6-month EURIBOR plus 2.15% 21.50 D-R BBB- (sf) 30.00 3/6-month EURIBOR plus 3.05% 14.00 E-R BB- (sf) 19.00 3/6-month EURIBOR plus 5.70% 9.25 F-R B- (sf) 11.00 3/6-month EURIBOR plus 8.50% 6.50 Z NR 3.50 N/A N/A Sub notes NR 28.38 N/A N/A *The ratings assigned to the class A loan and class A-R and B-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R, D-R, E-R, and F-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. SONA FIOS VI: S&P Assigns B- (sf) Rating to Class F Notes --------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Sona Fios CLO VI DAC's class A-1 and A-2 loans and class A to F notes. At closing, the issuer also issued unrated subordinated notes. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises mainly broadly syndicated speculative-grade senior-secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes and loans through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with our counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,693.90 Default rate dispersion 525.54 Weighted-average life (years) 5.18 Obligor diversity measure 114.44 Industry diversity measure 22.01 Regional diversity measure 1.30 Transaction key metrics Total par amount (mil. EUR) 500.00 Defaulted assets (mil. EUR) 0 Number of performing obligors 123 Portfolio weighted-average rating derived from S&P's CDO evaluator 'B' 'CCC' category rated assets (%) 0.00 Targeted 'AAA' weighted-average recovery (%) 35.61 Target weighted-average coupon net of floors (%) 3.29 Target weighted-average spread net of floors (%) 3.79 This is a European cash flow CLO transaction, securitizing a pool of mainly primarily syndicated senior secured loans or bonds. The portfolio's reinvestment period ends approximately 4.63 years after closing, and the portfolio's non-call period is 1.63 years after closing. Under the transaction documents, the rated notes pay quarterly interest unless there is a frequency switch event. Following this, the notes will switch to semiannual payment. The portfolio is well-diversified at closing, primarily comprising mainly broadly syndicated speculative-grade senior-secured term loans and senior-secured bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we modelled the EUR500million target par amount, the covenanted weighted-average spread of 3.66%, covenanted weighted-average coupon of 3.30%, and the target weighted-average recovery rates. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Following the application of our structured finance sovereign risk criteria, the transaction's exposure to country risk is limited at the assigned ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our criteria. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicate that the available credit enhancement for the class B to E notes is commensurate with higher ratings than those we have assigned. However, as the CLO will have a reinvestment period, during which the transaction's credit risk profile could deteriorate, we have capped the assigned ratings. "For the class F notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes." The ratings uplift for the class F notes reflects several key factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 24.84% (for a portfolio with a weighted-average life of 5.18 years), versus if it has to consider a long-term sustainable default rate of 3.2% for 5.18 years, which would result in a target default rate of 16.59%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' rating. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our ratings are commensurate with the available credit enhancement for each class of notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A-1 and A-2 loans and class A to F notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Sona Fios CLO VI DAC is a European cash flow CLO securitization of a revolving pool, comprising mainly senior secured loans and bonds issued mainly by sub-investment grade borrowers. Sona Asset Management (UK) LLP manages the transaction. Environmental, social, and governance S&P said, "We regard the transaction's exposure to environmental, social, and governance (ESG) credit factors as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets related to these activities does not result in material differences between the transaction and our ESG benchmark for the sector, we have not made any specific adjustments in our rating analysis to account for any ESG-related risks or opportunities." Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 48.50 38.00 Three/six-month EURIBOR plus 1.30% A-1 Loan AAA (sf) 103.40 38.00 Three/six-month EURIBOR plus 1.30% A-2 Loan AAA (sf) 158.10 38.00 Three/six-month EURIBOR plus 1.30% B AA (sf) 55.00 27.00 Three/six-month EURIBOR plus 2.00% C A (sf) 30.00 21.00 Three/six-month EURIBOR plus 2.30% D BBB- (sf) 35.00 14.00 Three/six-month EURIBOR plus 3.35% E BB- (sf) 22.50 9.50 Three/six-month EURIBOR plus 5.75% F B- (sf) 15.00 6.50 Three/six-month EURIBOR plus 8.00% Sub NR 39.30 N/A N/A *The ratings assigned to the class A-1 and A-2 loans and class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. Sub--Subordinated notes. NR--Not rated. N/A--Not applicable. VICTORY STREET II: S&P Assigns Prelim B- (sf) Rating to F Notes --------------------------------------------------------------- S&P Global Ratings assigned its preliminary ratings to Victory Street CLO II DAC's class A-R, A, B, C, D, E, and F notes. At closing, the issuer will also issue unrated subordinated notes. The preliminary ratings assigned to Victory Street CLO II's notes reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which we expect to be bankruptcy remote. -- The transaction's counterparty risks, which we expect to be in line with our counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,636.96 Default rate dispersion 529.95 Weighted-average life (years) 5.12 Obligor diversity measure 119.78 Industry diversity measure 21.61 Regional diversity measure 1.26 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.00 Actual 'AAA' weighted-average recovery (%) 36.59 Actual target weighted-average spread (net of floors; %) 3.67 Rationale Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio's reinvestment period will end 4.6 years after closing. S&P said, "At closing, we expect the portfolio to be well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we modeled a target par of EUR350 million. We also modeled the covenanted weighted-average spread (3.50%), the covenanted weighted-average coupon (4.00%), and the covenanted weighted-average recovery rates calculated in line with our CLO criteria for all classes of notes. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category." Until the end of the reinvestment period on July 15, 2030, the collateral manager may substitute assets in the portfolio as long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain--as established by the initial cash flows for each rating--and compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. S&P said, "Under our structured finance sovereign risk criteria, we consider the transaction's exposure to country risk sufficiently mitigated at the assigned preliminary ratings. "At closing, we expect the transaction's documented counterparty replacement and remedy mechanisms to adequately mitigate its exposure to counterparty risk under our counterparty criteria. "We expect the transaction's legal structure and framework to be bankruptcy remote, in line with our legal criteria. "The CLO will be managed by CIC Private Debt SAS, and the maximum potential rating on the liabilities is 'AAA' under our operational risk criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the preliminary ratings are commensurate with the available credit enhancement for the class A-R and A notes. Our credit and cash flow analysis indicates that the available credit enhancement for the class B to E notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from closing--during which the transaction's credit risk profile could deteriorate--we have capped our preliminary ratings on the notes. "For the class F notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes. The ratings uplift for the class F notes reflects several key factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that have recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 24.22% (for a portfolio with a weighted-average life of 5.12 years), versus if it was to consider a long-term sustainable default rate of 3.2% for five years, which would result in a target default rate of 16.38%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' preliminary rating. "Given our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our preliminary ratings are commensurate with the available credit enhancement for all the rated classes of notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also included the sensitivity of the ratings on the class A-R to E notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the transaction's exposure to environmental, social, and governance (ESG) credit factors as broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental and social credit factors is viewed as below average, while governance credit factors are average. For this transaction, the documents prohibit or limit certain assets from being related to certain activities. Accordingly, since the exclusion of assets from these activities does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Victory Street CLO II DAC is a European cash flow CLO securitization of a revolving pool, comprising mainly euro-denominated leveraged loans and bonds. The transaction is a broadly syndicated CLO that will be managed by CIC Private Debt SAS. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A-R AAA (sf) 60.00 38.00 Three/six-month EURIBOR plus 1.31% A AAA (sf) 157.00 38.00 Three/six-month EURIBOR plus 1.31% B AA (sf) 38.50 27.00 Three/six-month EURIBOR plus 1.95% C A (sf) 21.00 21.00 Three/six-month EURIBOR plus 2.10% D BBB- (sf) 24.50 14.00 Three/six-month EURIBOR plus 3.10% E BB- (sf) 15.80 9.49 Three/six-month EURIBOR plus 5.50% F B- (sf) 10.50 6.49 Three/six-month EURIBOR plus 8.59% Sub notes NR 27.70 N/A N/A *The preliminary ratings assigned to the class A-R, A and B notes address timely interest and ultimate principal payments. The preliminary ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. ========= I T A L Y ========= CASSIA 2022-1: Moody's Affirms Ba3 Rating on Class C Notes ---------------------------------------------------------- Moody's Ratings has upgraded the rating of one and affirmed the ratings of two classes of notes issued by Cassia 2022-1 S.R.L.: EUR153.425M Class A Notes, Upgraded to A1 (sf); previously on Jul 21, 2025 Affirmed A2 (sf) EUR34.8M Class B Notes, Affirmed Baa3 (sf); previously on Jul 21, 2025 Affirmed Baa3 (sf) EUR47.245M Class C Notes, Affirmed Ba3 (sf); previously on Jul 21, 2025 Affirmed Ba3 (sf) RATINGS RATIONALE The upgrade action reflects Moody's recent upgrade of Italy's government bond rating to Baa2. The ratings of the notes in this transaction are constrained at four notches above Italy's government bond rating. Overall, the loan portfolio shows a stable performance. The reported weighted average (WA) debt yield (DY) of the two loans remains strong at 11.2%, while the WA loan-to-value (LTV) ratio has reduced to 50.8%, down from 59.9% at closing. This reduction in LTV follows the disposal of two properties during 2025 and an increase in reported market values based on the July 2025 valuations. Moody's current WA LTV of the two loans stands at 77.4%, down from 78.2% at closing. Moody's current LTV for the Thunder portfolio loan is 79.4% and 73.2% for the Jupiter portfolio loan as compared to 80.4% and 73.2% at closing respectively. As of the August 2025 IPD[1], two properties were sold from the Thunder portfolio during 2025, reducing the total number of properties in the portfolio to 18. The proceeds from the disposals were used to top up the liquidity reserve and the remaining EUR10.3 million were used to prepay the notes on a pro-rata basis. Together with the recent portfolio revaluation, the principal prepayments have lowered Thunder II's reported LTV to 51.1%, compared to 59.6% at closing. Following the July 2025 revaluation, the reported LTV for the Jupiter loan has reduced to 50.1% from 57.7%. PERFORMANCE SUMMARY The transaction is backed by two uncrossed loans, with the outstanding balance reduced to EUR224.5 million from EUR236.4 million at closing. These loans are secured against 40 logistics properties across Italy, most of which are strategically located along the country's primary logistics corridors. The sponsor of the loans is Blackstone Real Estate Partners L.P. In August 2022, an unintended redemption occurred, funded by amounts drawn from the liquidity reserve, which led to a temporary reduction in the reserve balance. To address the reduction, the transaction documentation was amended in November 2022 to correct the partial redemption[2]. Among the amendments, it was stipulated that principal receipts from prepayments would be used to replenish the liquidity reserve before being allocated to pay down the notes. Following the recent disposals, the reserve has been fully restored to its intended commitment level and now stands at EUR11.0 million. Furthermore, there was no release premium included as the total disposed property value was below the 10% of market value threshold. The release price mechanism for each loan states that there is no release premium for the first 10% of properties sold by market value (MV), a 105% premium with respect to the subsequent 10% of properties sold, and then 110% thereafter. According to the August 2025 Quarterly Investor Report[1], the Jupiter portfolio, comprising 22 properties, is fully occupied as compared to 6.8% vacancy at closing. The Thunder portfolio has been reduced to 18 properties following two disposals. After peaking in August 2024 at 24.8%, the Thunder portfolio's vacancy rate has started to decline and currently it stands at 14.6%. The relatively elevated vacancy is attributed to ongoing capex works affecting several properties. However, strong sector fundamentals and the enhanced quality of the upgraded properties should support the re-letting. On existing releasing activity, both portfolios exhibit strong reletting spreads over the past year. Moody's value of the properties is approximately 34% lower than the latest reported values as of the August 2025 IPD. Specifically, Moody's value the Thunder II portfolio at 36% below its reported value (adjusted for the disposals), and the Jupiter portfolio at 32% below its reported value. Moody's rating action reflects a base pool expected loss of 1.4% of the current balance. Moody's derive this loss expectation from the analysis of the default probability of the securitised loans (both during the term and at maturity) and the value assessment of the collateral. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "EMEA Commercial Mortgage-backed Securitisations" published in June 2025. Factors that would lead to an upgrade or downgrade of the ratings: Main factors or circumstances that could lead to an upgrade of the ratings are generally (i) an increase in the property values backing the underlying loans, or (ii) a decrease in default risk assessment or (iii) given the exposure to Italy a decrease in sovereign risk. Main factors or circumstances that could lead to a downgrade of the ratings are generally (i) a decline in the property values backing the underlying loans, especially due to prolonged higher than expected vacancy levels in the Thunder portfolio or (ii) an increase in default risk assessment or (iii) given the exposure to Italy an increase in sovereign risk. =========== R U S S I A =========== KDB BANK: S&P Raises Issuer Credit Rating to 'BB', Outlook Stable ----------------------------------------------------------------- S&P Global Ratings took the following rating actions: -- S&P raised its long-term issuer credit ratings to 'BB' from 'BB-' and affirmed its 'B' short-term issuer credit ratings on the National Bank For Foreign Economic Activity Of The Republic Of Uzbekistan JSC (NBU). The outlook is stable. -- S&P raised its long-term issuer credit ratings to 'BB' from 'BB-' and affirmed its 'B' short-term issuer credit ratings on KDB Bank Uzbekistan JSC (KDB Uzbekistan). The outlook is stable. S&P said, "The sovereign upgrade to Uzbekistan reflects our view on gradual progress on the country's policymaking. Uzbekistan's structural reform agenda has increasingly focused on introducing market pricing mechanisms and attracting investment to reduce the state's historically large footprint in the economy. Key measures have included energy tariff adjustments, strengthening the quality of regulatory oversight, a focus on privatizing state-owned enterprises (SOEs), and preparations for World Trade Organization accession in 2026. While privatization has advanced slowly and SOEs continue to play a significant role, the government's reform program, together with resilient household consumption and underpinned by strong remittance inflows and rising wages, should support solid economic growth over the next two-to-three years. "Uzbekistan's economic growth has averaged almost 6% annually over the past eight years since the start of economic liberalization. The economy expanded by 7.6% in the first nine months of 2025, compared with 6.6% for the same period in 2024. This was bolstered by strong performance across a range of sectors, including information and communication, construction, tourism, and trade. High gold prices have also supported currency appreciation and significantly lifted GDP in dollar terms. We forecast buoyant growth of 6.3% per year on average over 2025-2028, with resilient household demand and the government's sizable investments in energy, mining sector capacity expansion projects, and other infrastructure projects, along with social spending. Government measures to stimulate the economy and maintain price stability, such as zero rates on customs duties and regulated prices on certain foods and other key consumer goods, should also boost consumption. "Strong economic growth momentum will continue supporting new business and the banking sector's performance over the next two years. We forecast domestic lending growth below 20% in 2026, balancing the supportive economy and the regulator's measures to limit overly aggressive retail lending growth. "We believe that the government's dominant positions in the banking sector and economy will decrease only gradually. As of Nov. 1, 2025, state-owned banks dominate the sector and hold almost 65% of total assets, which distorts the operating environment for Uzbekistani banks, as state-owned banks have preferential access to the clients and funding sources related to the government. At the same time, on average, state-owned banks' asset quality and profitability metrics will likely remain weaker compared with the sector average, reflecting higher lending concentrations of their corporate loan books." National Bank For Foreign Economic Activity Of The Republic Of Uzbekistan JSC Primary analyst: Natalia Yalovskaya S&P said, "We expect NBU will continue demonstrating resilient performance, supported by its strong position as a leading bank in Uzbekistan with sizable market shares in commercial business and public projects. We think the bank's strong market position, wide geographic footprint in Uzbekistan, and long-term relationships with the largest state-owned enterprises from strategically important sectors will continue to support its business position." With total assets of Uzbek sum (UZS) 137.2 trillion (about $11.4 billion) as of Nov. 1, 2025, NBU remains the largest bank in Uzbekistan with market shares of 15.6% in total assets, 17.7% in lending, and 12.7% in deposits. As of June 30, 2025, NBU reported nonperforming loans (NPLs; stage 3 loans under IFRS) at 4.2% of total loans, which compares well with the average in the sector and is better than the average of state-owned banks. At the same time, stage 2 loans increased to 18.9% from an already-high 17.8% as of year-end 2024. In line with the general focus of the government on reducing its historical dominance in the economy, state-owned banks' market share has been gradually diminishing over the past few years, and the NBU market share dynamics reflect the same. However, in S&P's view, NBU will maintain its dominance in the sector over the next two-to-three years, given that the government has no intention to privatize it--unlike Asaka and Uzpromstroybank (SQB)--and the bank will continue providing a wide range of services to corporate and retail clients and be involved in implementing the government's growth and modernization agenda. S&P said, "We see a very high likelihood that NBU will receive extraordinary government support if needed, reflecting its very strong link with the government and its unique role in Uzbekistan's financial system and economy. While we expect the bank to continue having high systemic importance for the banking sector and maintaining its relationship with the government for the foreseeable future, we do not incorporate any notches of extraordinary support in our long-term rating on NBU because the bank's stand-alone credit profile is at the same level with the sovereign rating." Outlook The stable outlook on NBU mirrors that on the sovereign. It also reflects our expectation that the bank will maintain its leading position in the Uzbekistani banking sector and its very strong links with the government will continue supporting its diversified business profile, adequate capital buffers, and a stable and diversified funding base over the next 12 months. Downside scenario: S&P could consider a negative rating action on NBU in the next 12 months if it takes a similar action on the sovereign. Upside scenario: S&P would consider a positive rating action on the bank in the next 12 months if it takes a similar action on the sovereign and NBU's creditworthiness strengthens. Rating Component Scores To From Issuer Credit Rating BB/Stable/B BB-/Positive/B SACP bb bb Anchor b+ b+ Business position Strong (1) Strong (1) Capital and earnings Adequate (1) Adequate (1) Risk position Adequate (0) Adequate (0) Funding and Liquidity Adequate and Adequate and Adequate (0) Adequate (0) Comparable ratings analysis 0 0 Support 0 0 ALAC support 0 0 GRE support 0 0 Group support 0 0 Sovereign support 0 0 Additional factors 0 -1 SACP--Stand-alone credit profile. ALAC--Additional loss-absorbing capacity. GRE--Government-related entity. KDB Bank Uzbekistan JSC Primary analyst: Annette Ess S&P said, "We expect KDB Uzbekistan's performance to be supported by a solid capital buffer, geographically diverse asset structure, better governance standards than the average for banks in Uzbekistan, and operational and financial support from its parent, Korea Development Bank (AA/Stable/A-1+). A narrow customer base, limited market share and high single name concentrations will remain the key weaknesses. Customer loans constituted only 22% of KDB Uzbekistan's assets at Sept. 30, 2025, with the top 20 borrowers representing almost the full portfolio. The bank aims to grow its franchise, but we expect the concentration will be broadly the same. "We expect that KDB Uzbekistan's capitalization will remain very strong over the next 12 months. The bank's risk-adjusted capital (RAC) ratio was 19.4% at year-end 2024. We forecast that the RAC ratio will increase further to 22%-23% by year-end 2026, supported by about 20% targeted loan growth and solid earnings. At Sept. 30, 2025, its total capital adequacy ratio was 40.7%, well above the 13% regulatory minimum. "We expect KDB Uzbekistan's asset quality metrics will outperform those of peers over the next one-to-two years thanks to better governance standards. In our view, NPLs will stay much lower than the system average, at no more than 1% of the bank's gross portfolio by year-end 2026. This is because the robust underwriting standards that the parent sets and reviews will mitigate risks related to lending growth. Currently, the bank reports NPLs close to zero. "We continue considering KDB Uzbekistan a strategically important subsidiary of Korea Development Bank. The bank is important to its parent's long-term strategy and supports strong economic ties between the Uzbekistani and South Korean governments, especially considering Korea Development Bank's status as a government-related entity. We can rate KDB Uzbekistan up to three notches higher than the stand-alone credit profile of 'bb', to reflect potential extraordinary support from the group. "We cap the ratings on the bank at the level of our foreign currency long-term sovereign credit rating on Uzbekistan. Although about half of KDB Uzbekistan interbank exposures are outside of Uzbekistan, its lending activities are only domestic. About 80% of funding was denominated in foreign currency at year-end 2024. We therefore think that in the stress scenario that would likely accompany a theoretical sovereign default, the bank would face substantial impairments that would erode its capital base, and it would not be able to fulfill its obligations in full and on time if capital and currency control measures were imposed. In our view, the parent would not be able to fully mitigate the stress associated with a hypothetical sovereign default." Outlook The stable outlook on KDB Uzbekistan reflects that on the sovereign. The outlook on KDB Uzbekistan also reflects S&P's view that, in the next 12 months, the bank will adhere to its business model and maintain a low risk profile, while it continues to display solid profitability and very strong capitalization. Downside scenario: S&P could take a negative rating action on the bank if it took a similar action on Uzbekistan. Upside scenario: A positive rating action on KDB Uzbekistan would hinge on a positive rating action on Uzbekistan, assuming that Korea Development Bank maintains its commitment to provide extraordinary support to its Uzbekistani subsidiary if needed, and KDB Uzbekistan's creditworthiness remains the same. Rating Component Scores To From Issuer Credit Rating BB/Stable/B BB-/Positive/B SACP bb bb Anchor bb- bb- Business position Moderate (-1) Moderate (-1) Capital and earnings Very strong (2) Very strong (2) Risk position Adequate (0) Adequate (0) Funding and Liquidity Adequate and Adequate and Adequate (0) Adequate (0) Comparable ratings analysis 0 0 Support 0 0 ALAC support 0 0 GRE support 0 0 Group support 0 3 Sovereign support 0 0 Additional factors 0 -4 SACP--Stand-alone credit profile. ALAC--Additional loss-absorbing capacity. GRE--Government-related entity. Ratings List KDB Bank Uzbekistan JSC Upgraded; Outlook Action To From KDB Bank Uzbekistan JSC Issuer Credit Rating BB/Stable/B BB-/Positive/B National Bank For Foreign Economic Activity Of The Republic Of Uzbekistan JSC Upgraded; Outlook Action To From National Bank For Foreign Economic Activity Of The Republic Of Uzbekistan JSC Issuer Credit Rating BB/Stable/B BB-/Positive/B Upgraded To From National Bank For Foreign Economic Activity Of The Republic Of Uzbekistan JSC Senior Unsecured BB BB- REGION OF FERGANA: S&P Raises ICR to 'BB-' on Resilient Growth -------------------------------------------------------------- On Nov. 28, 2025, S&P Global Ratings raised its local and foreign currency long-term issuer credit ratings on Uzbekistan's Fergana Region to 'BB-' from 'B+'. The outlook is stable. Outlook The stable outlook for Fergana balances the region's track record of operating a balanced budget and maintaining a strong debt position against the inherent risks of Uzbekistan's weak institutional framework for local governments. Key fiscal decisions are taken by the central government with limited ability of the regions, including Fergana, to influence them. Downside scenario S&P could lower the ratings if a change in the relationship between Fergana and Uzbekistan's central government caused support to the region to weaken, leading to a deterioration in the region's budgetary performance or debt position. Upside scenario Over the longer term, S&P could raise its ratings on Fergana if the institutional environment for local governments in Uzbekistan strengthened materially--with improved predictability, transparency, and ability of local governments to influence central government decisions affecting their performance--while, at the same time, the quality of Fergana's financial management improved. Rationale S&P said, "In our view, Uzbekistan has improved macroeconomic policymaking in recent years. Beginning in 2017, with the liberalization of the exchange rate, Uzbekistan's structural reform agenda has increasingly focused on introducing market pricing mechanisms and attracting investment to reduce the state's historically large footprint in the economy. Key measures have included energy tariff adjustments, strengthening the quality of regulatory oversight, a focus on privatizing state-owned enterprises, and preparations for World Trade Organization accession in 2026. Record gold prices have contributed to a doubling of Uzbekistan's international reserves between 2023 and 2025 and we expect the country will record resilient growth averaging close to 6% annually in real terms over 2026-2028." The region of Fergana is likely to benefit from these developments, given that the central government plays a key role in providing it with financing. The national administration not only provides transfers but also directly finances most of the public sector investments taking place in the region--over 80%, as of 2024. S&P said, "Over the next two to three years, we anticipate that Fergana's economic growth will endure, supporting a rise in average incomes from the currently very low levels. The region has already seen its average GDP per capita rise to $1,800 in 2024 from about $1,200 in 2019. Its growth prospects are supported by ongoing investments, including projects to boost tourism, expand agricultural exports, and encourage the production of vehicles and agricultural machinery. Our forecasts indicate that Fergana's economic growth will broadly mirror that of Uzbekistan, averaging 6.0%-6.5% in real terms through 2027, with per capita income gradually increasing to $2,500 by 2028. "Fergana maintains a strong debt position, currently having only a single outstanding loan from the central government (of under 0.5% of operating revenue) and no other debt. Under Uzbekistani law--which we don't expect to change over the next three years--local governments are only allowed to borrow from the central government. We forecast that Fergana will adhere to national regulations, maintain a balanced budget, and will not resort to material borrowing over the next one to two years. "Our ratings on Fergana are still constrained by the very volatile and centralized nature of Uzbekistan's institutional framework for local and regional governments. Key decisions are taken at the sovereign level and are difficult to predict. Central government controls limit the region's ability to influence its own budgetary performance and we consider Fergana's broader financial management to be comparatively weak, with limited planning beyond the current year's budget." Uzbekistan's local governments operate in a highly centralized and volatile institutional environment and income levels in Fergana remain low, despite recent improvements In S&P's view, Uzbekistan's local governments have limited ability to collectively influence central government policies. This exposes them to the risk of unexpected policy shifts. Some decentralization of power has taken place since 2016, when former Uzbekistan president Islam Karimov died after 25 years in power. For example, a higher proportion of taxes is now allocated to local budgets and local governments have more discretion over how to spend revenue collected in excess of the budgeted amounts (for instance, revenue from value-added tax). However, the effect of such reforms has been somewhat offset by several recent decisions that returned responsibilities to the central government. Some of these decisions appear to have been made with limited advance planning. For example, in 2024, the central government took over making benefit payments to families with children and those in poverty. It also took charge of investing in the construction of new schools and kindergartens. S&P said, "In our view, Fergana's financial management has limited ability to reliably plan spending and make policy decisions because of the system's highly centralized nature and the frequent changes of direction imposed by central government. The region's management started to implement medium-term planning in 2018, but discrepancies between its forecasts at the beginning of the year and actual financial outcomes remain frequent and sizable. In our view, debt and liquidity management practices remain at an early stage of development. We believe that these factors constrain the region's creditworthiness." Fergana's local government is attempting to attract more international investments into the region. The aim is to expand production in key sectors such as agriculture, textiles, construction materials, and chemicals. The regional government also plans to expand the manufacturing sector and has attracted foreign investment into the production of passenger cars and agricultural vehicles. Uzbekistan's laws allow foreign investors that operate in Fergana to receive multiple tax breaks based on the total size of their investment, while also getting help connecting to regional infrastructure and with expanding exports into international markets. S&P said, "In our view, risks remain that the U.S. and EU could apply sanctions to Uzbekistani companies that do business with Russia. Several Uzbekistani companies involved in trading electronic and telecommunications equipment and defense-related goods have already been sanctioned since 2022. We note that, according to assertions by public investigative reports, some cotton cellulose produced in Fergana was allegedly supplied to the Russian military sector. We understand, however, that Uzbekistan's government has been implementing additional measures to comply with international sanctions requirements." S&P forecasts that Fergana will maintain a balanced budgetary performance over 2025-2027 Fergana reports compliance with Uzbekistani legislation that prohibits it from running any deficits, based on local definitions. S&P said, "Our adjusted figures may, however, diverge from those published by Fergana because we don't consider budget surpluses from the previous years and loans from the central government to be new revenue sources. Furthermore, we do not view debt repayments as expenditure." Based on S&P Global Ratings' cash-focused approach, Fergana reported a surplus after capital accounts of close to 1% in 2024, bolstered by strong intake of personal and corporate income taxes. Previously, it ran an average deficit after capital accounts of 0.8% over 2022-2023. The region predominantly used available cash and advances from the central government to cover these past deficits. The advances amounted to Uzbek sum (UZS) 51 billion (equivalent to $4 million) in 2022 and UZS65 billion ($5 million) in 2023. S&P said, "We project Fergana's average balance after capital accounts through 2027 to be marginally positive. That said, revenue sources are likely to be volatile, given the central government's record of frequently revising tax rates, expenditure responsibilities, and transfer amounts. For instance, earlier in 2025, the responsibility for health care spending has been transferred to Fergana from lower levels of local government (cities and districts), but, at the same time, a larger proportion of central government transfers was directed to Fergana's budget instead of being passed on to cities and districts. This ensured that the budget remained in balance, despite these additional spending responsibilities. "In our view, Fergana has substantial infrastructure needs, which constrain its economic development prospects and somewhat limit its budgetary flexibility. However, we believe the funding backlog is unlikely to lead to a material accumulation of debt, given that the region remains prohibited from commercial borrowing. "We understand that Fergana oversees some enterprises that are owned by the central government but operate locally. Fergana itself does not have a stake in these regional enterprises, and the region has so far not provided subsidies, capital injections, or extraordinary support to companies owned by the central government. Some subsidized local public services, such as transportation, are provided by private companies locally but it is the central government that bears the cost of these ticket subsidies rather than Fergana's regional budget. "We expect Fergana's liquidity position will remain solid, given that its direct debt is represented by just a single loan from the central government, albeit maturing in 2026. The region's debt service coverage ratio could, however, weaken in the long term if it was allowed to attract debt, contrary to our base-case scenario." Fergana is currently eligible to receive central government budget loans to cover liquidity shortages. Over 2021-2024, it received loans totaling UZS198 billion for this purpose, but it fully repaid these loans in the first half of 2025, ahead of schedule. The loans were at favorable interest rates, with cumulative interest payments of just UZS3.7 billion on UZS198 billion of debt. Fergana subsequently borrowed another UZS60 billion from the central government in August 2025, of which UZS30 billion has already been repaid, while the remaining UZS30 billion is due by the end of 2026. This loan carries a 2% annual interest rate and was contracted to finance the demolition of several buildings to construct new housing. In S&P's view, the Fergana region has limited access to external funding. It has no history of borrowing from nongovernment institutions, and Uzbekistan's capital market and banking sector are underdeveloped. Rating Component Scores Key rating factors Scores Institutional framework 6 Economy 5 Financial management 5 Budgetary performance 3 Liquidity 3 Debt burden 1 Stand-alone credit profile bb- Issuer credit rating BB- S&P Global Ratings bases its ratings on non-U.S. local and regional governments (LRGs) on the six main rating factors in this table. In the "Methodology For Rating Local And Regional Governments Outside Of The U.S.," published on July 15, 2019, we explain the steps we follow to derive the global scale foreign currency rating on each LRG. The institutional framework is assessed on a six-point scale: 1 is the strongest and 6 the weakest score. Our assessments of economy, financial management, budgetary performance, liquidity, and debt burden are on a five-point scale, with 1 being the strongest score and 5 the weakest. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Rating Component Scores above. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. Ratings List Ratings List Upgraded; Outlook Action To From Fergana Region Issuer Credit Rating BB-/Stable/-- B+/Positive/-- =========================== U N I T E D K I N G D O M =========================== AB DEVELOPMENTS: CG & Co Appointed as Joint Administrators ---------------------------------------------------------- AB Developments and Construction Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Court Number: CR-2025-MAN-00158, and Edward M Avery-Gee and Daniel Richardson of CG & Co were appointed as administrators on Nov. 19, 2025. AB Developments and Construction Ltd specialized in the development of building projects. Its registered office is at c/o CG & Co, 27 Byrom Street, Manchester, M3 4PF (previously 112–114 Market Street, Hindley, Wigan, Lancashire, WN2 3AY). Its principal trading address at 122 Chapel Lane, Coppull, Chorley, PR7 4PN. The joint administrators can be reached at: Edward M Avery-Gee Daniel Richardson CG & Co 27 Byrom Street Manchester, M3 4PF For further details contact: Stephanie Adams Tel No: 0161 885 7251 Email: stephanie.adams@cg-recovery.com BRAMBLE ENERGY: FRP Advisory Appointed as Joint Administrators -------------------------------------------------------------- Bramble Energy Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Court Number: CR-2025-007795, and Ian James Corfield and Simon Baggs of FRP Advisory Trading Limited were appointed as administrators on Nov. 17, 2025. Bramble Energy Limited specialized in the manufacture of renewable energy. Its registered office is at Atrium Court Tilgate Business Park, Brighton Road, Crawley, RH11 9BP and is to be changed to c/o FRP Advisory Trading Limited, 2nd Floor, 110 Cannon Street, London, EC4N 6EU. Its principal trading address at Atrium Court Tilgate Business Park, Brighton Road, Crawley, RH11 9BP. The joint administrators can be reached at: Ian James Corfield Simon Baggs FRP Advisory Trading Limited 110 Cannon Street London, EC4N 6EU Further details contact: The Joint Administrators Tel No: 020 3005 4000 Alternative contact: Chloe Henshaw Email: Chloe.Henshaw@frpadvisory.com HOLBROOK MORTGAGE 2023-1: S&P Affirms 'B- (sf)' Rating on F Notes ----------------------------------------------------------------- S&P Global Ratings raised its credit ratings on Holbrook Mortgage Transaction 2023-1 PLC's class C-Dfrd notes to 'AA (sf)' from 'AA- (sf)', D-Dfrd notes to 'A+ (sf)' from 'A- (sf)', and E-Dfrd notes to 'BBB (sf)' from 'BBB- (sf)'. At the same time, S&P affirmed its 'AAA (sf)', 'AA+ (sf)', and 'B- (sf)' ratings on the class A, B-Dfrd, and F-Dfrd notes, respectively. The rating actions follow its full analysis of the latest transaction information S&P has received and the transaction's structural features. As of October 2025, 30+ days arrears have increased to 7.29%--half the level in S&P's nonconforming index. The transaction's sequential priority of payments and the notes' swift amortization have increased the available credit enhancement. The pool factor is at 39%. The liquidity reserve fund and the general reserve fund remain undrawn and the transaction has experienced no losses. S&P said, "We applied our global RMBS criteria to our analysis. Since our previous review, our weighted-average foreclosure frequency assumptions have increased at all rating levels, mainly due to the increase in arrears. However, our weighted-average loss severity assumptions have decreased, due to a lower loan-to-value ratio and a reduction in under and over-valuations." Credit analysis results WAFF (%) WALS (%) Credit coverage (%) AAA 27.26 32.34 8.82 AA 19.87 26.77 5.32 A 16.04 17.39 2.79 BBB 12.20 12.27 1.50 BB 8.35 8.88 0.74 B 7.38 6.06 0.45 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity S&P said, "The results of our credit analysis indicate a decrease in the required credit coverage for all investment-grade rating levels since our previous review. This is reflected in our upgrades of the class C-Dfrd, D-Dfrd, and E-Dfrd notes. "The affirmations of our ratings on the class A and B-Dfrd notes reflect stable cash flow results, supported by higher credit enhancement and lower credit results. While the class B-Dfrd notes withstand our 'AAA' cash flow stresses, their structural subordination to the class A notes and ability to defer interest constrain their rating to 'AA+ (sf)'. "We affirmed our 'B- (sf)' rating on the class F-Dfrd notes, as they do not benefit from increasing credit enhancement. Although they do not pass our 'B' cashflow stresses, they do not rely on favorable economic or financial conditions for repayment." The transaction is backed by a mortgage pool of first-ranking owner-occupied residential mortgages originated by The Mortgage Lender Ltd. in England, Wales, and Scotland. MERIT GROUP: Interpath Ltd Appointed as Joint Administrators ------------------------------------------------------------ Merit Group Services Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Newcastle upon Tyne, Court Number: CR-2025-NCL-000149, and James Ronald Alexander Lumb and William James Wright of Interpath Ltd were appointed as administrators on Nov. 17, 2025. Merit Group Services Limited specialized in activities of other holding companies not elsewhere classified. Its registered office is at c/o Interpath Ltd, 60 Grey Street, Newcastle upon Tyne, NE1 6AH. Its principal trading address is at 8 Silverton Court, Northumberland Business Park, Cramlington, NE23 7RY. The joint administrators can be reached at: James Ronald Alexander Lumb Interpath Ltd 60 Grey Street Newcastle upon Tyne, NE1 6AH William James Wright Interpath Ltd 10 Fleet Place London, EC4M 7RB Further details contact: James Dodsworth Tel No: 0113 887 7870 MERIT HEALTH: Interpath Ltd Appointed as Joint Administrators ------------------------------------------------------------- Merit Health Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Newcastle upon Tyne, Court Number: CR-2025-NCL-000142, and James Ronald Alexander Lumb and William James Wright of Interpath Ltd were appointed as administrators on Nov. 18, 2025. Merit Health Limited specialized in engineering design activities. Its registered office is at c/o Interpath Ltd, 60 Grey Street, Newcastle upon Tyne, NE1 6AH. Its principal trading address is at 8 Silverton Court, Northumberland Business Park, Cramlington, England, NE23 7RY. The joint administrators can be reached at: James Ronald Alexander Lumb Interpath Ltd 60 Grey Street Newcastle upon Tyne, NE1 6AH William James Wright Interpath Ltd 10 Fleet Place London, EC4M 7RB Further information contact: Tel No: 0113 887 7870 MERIT HOLDINGS: Interpath Ltd Appointed as Joint Administrators --------------------------------------------------------------- Merit Holdings Limited, formerly known as Merit Merrell Technology Limited and Crossco (701) Limited, was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Newcastle upon Tyne, Court Number: CR-2025-NCL-000141, and James Ronald Alexander Lumb and William James Wright of Interpath Ltd were appointed as administrators on Nov. 18, 2025. Merit Holdings Limited specialized in engineering design activities. Its registered office is at c/o Interpath Ltd, 60 Grey Street, Newcastle upon Tyne, NE1 6AH. Its Principal trading address at 8 Silverton Court, Northumberland Business Park, Cramlington, NE23 7RY. The joint administrators can be reached at: James Ronald Alexander Lumb Interpath Ltd 60 Grey Street Newcastle upon Tyne, NE1 6AH William James Wright Interpath Ltd 10 Fleet Place London, EC4M 7RB RASICO CONSTRUCTION: DFW Associates Appointed as Administrator -------------------------------------------------------------- Rasico Construction Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Leeds, Insolvency & Companies List (ChD), Court Number: CR-2025-001112, and David Frederick Wilson of DFW Associates was appointed as administrator on Nov. 14, 2025. Rasico Construction Ltd specialized in the construction of domestic buildings. Its registered office and principal trading address is at Unit 6 Darlington Farm Auction, Humbleton, Darlington, County Durham, LD2 2XX. The administrator can be reached at: David Frederick Wilson DFW Associates 29 Park Square West Leeds, LS1 2PQ Further details contact: The Administrator Tel No: 0113 390 7940 Email: info@dfwassociates.co.uk Alternative contact: James Nuttall TULLOW OIL: S&P Cuts LT ICR to 'CCC-' on Debt Restructuring Risk ---------------------------------------------------------------- S&P Global Ratings lowered its ratings on U.K.-Registered Tullow Oil and its senior secured notes to 'CCC-' from 'CCC'. The negative outlook indicates that S&P could lower its ratings if Tullow Oil is unable to fully repay, or extend the maturity of, the senior secured notes due in May 2026; or pursues a transaction that we consider tantamount to a default, including a subpar exchange. Tullow Oil has not yet addressed its $1.3 billion of senior secured notes due on May 15, 2026, and only $194 million in cash on its balance-sheet as of June 30, 2025, with S&P Global Ratings-adjusted free operating cash flow (FOCF) that S&P anticipates will be negative in 2025 and 2026. As such, S&P believes that Tullow Oil faces a high likelihood of a conventional default or a debt restructuring that it could consider tantamount to a default in the next six months. The group's $1.3 billion senior secured notes are due on May 15, 2026. Tullow Oil has so far not been able to refinance or extend the maturity of these notes. If it fails to do so in the next six, months, it will face a liquidity crunch. S&P said, "In addition, considering the company's current weak liquidity position, we see a high possibility that it may pursue a debt restructuring, which we could consider to be a distressed transaction." S&P said, "We expect Tullow Oil to generate negative S&P Global Ratings-adjusted FOCF after lease payments in 2025 and 2026. We incorporate our Brent crude price assumption of $60 per barrel (/bbl) for the remainder of 2025 and 2026 and $65/bbl thereafter. We forecast materially negative FOCF after lease payments for 2025 and 2026. "The negative outlook indicates that we could lower our ratings if Tullow Oil is unable to fully repay, or extend the maturity of, the senior secured notes due in May 2026; or pursues a transaction that we consider tantamount to a default, including a subpar exchange." S&P could lower its ratings if Tullow Oil if the company: -- Is unable to fully repay, or extend the maturity of, the senior secured notes due in May 2026; or -- Pursues a transaction that S&P considers tantamount to a default, including a subpar exchange. S&P could take a positive rating action if Tullow Oil: -- Extends the maturity of its senior secured notes in a transaction that S&P does not view as distressed; or -- Secures alternative financing that provides it with a comfortable liquidity cushion for the next 12 months. UNIQUE PROPERTY: Begbies Traynor Appointed as Joint Administrators ------------------------------------------------------------------ Unique Property Investment Group Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List, Court Number: 005172 of 2025, and Robert Dymond and Joanne Louise Hammond of Begbies Traynor (Central) LLP were appointed as administrators on Nov. 5, 2025. Unique Property Investment Group Ltd specialized in other letting and operating of own or leased real estate. Its registered office is at 30 Old Bailey, London, EC4M 7AU. The joint administrators can be reached at: Robert Dymond Joanne Louise Hammond Begbies Traynor (Central) LLP Suite 500, Unit 2, 94A Wycliffe Road Northampton, NN1 5JF Further details contact: Ryan Law Tel No: 0114 2755033 Email: sheffield.north@btguk.com VIDEOONDEMAND365: Leonard Curtis Appointed as Joint Administrators ------------------------------------------------------------------ VideoOnDemand365 Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number: CR-2025-MAN-001552, and Hilary Pascoe and Andrew Poxon of Leonard Curtis were appointed as administrators on Nov. 14, 2025. VideoOnDemand365 Limited specialized in streaming and on-demand services. Its registered office is at James House, Stonecross Business Park, Yew Tree Way, Warrington, WA3 3JD. Its has no principal trading address as it operates remotely. The joint administrators can be reached at: Hilary Pascoe Andrew Poxon Leonard Curtis Riverside House, Irwell Street Manchester, M3 5EN Further details contact: The Joint Administrators Tel No: 0161 831 9999 Email: recovery@leonardcurtis.co.uk Alternative contact: Amelia Heeds VINYL (GB): Parker Andrews Appointed as Joint Administrators ------------------------------------------------------------ Vinyl (GB) Limited, formerly known as Vinyl Limited, was placed into administration proceedings in the High Court of Justice, Court Number: CR-2025-001529, and Grace Jones and David Perkins of Parker Andrews Limited were appointed as administrators on Nov. 17, 2025. Vinyl (GB) Limited specialized in the manufacture of plastics in primary forms. Its registered office is at Unit 1 Prospect Estate, Llay Industrial Estate North, Llay, Wrexham, LL12 0PB and will shortly be changed to c/o Parker Andrews Ltd, 5th Floor, The Union Building, 51–59 Rose Lane, Norwich, Norfolk, NR1 1BY. Its principal trading address is at Unit 1 Prospect Estate, Llay Industrial Estate North, Llay, Wrexham, LL12 0PB. The administrators can be reached at: Grace Jones David Perkins Parker Andrews Limited 5th Floor, The Union Building 51–59 Rose Lane Norwich, NR1 1BY Further details contact: Mark Middlemas Tel No: 01603 284284 Email: mark.middlemas@parkerandrews.co.uk ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *