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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
Monday, January 19, 2026, Vol. 27, No. 13
Headlines
A R M E N I A
ARDSHINBANK OJSC: Fitch Rates Upcoming Unsec. Notes 'BB-(EXP)'
F R A N C E
TEREOS SCA: Fitch Gives 'BB(EXP)' Rating to EUR300MM Unsec. Notes
I R E L A N D
ANCHORAGE CAPITAL 13: Fitch Rates Class F Debt 'B-sf'
AVOCA CLO XXI: S&P Assigns B-(sf) Rating on Class F-R Notes
CVC CORDATUS XII: Fitch Rates Class F-R Debt 'B-sf'
HENLEY CLO XV: S&P Assigns B-(sf) Rating on Class F Notes
MADISON PARK XIII: S&P Assigns B-(sf) Rating on Class F-R Notes
NEUBERGER BERMAN 8: S&P Assigns B-(sf) Rating on Class F Notes
PENTA CLO 21: Fitch Gives B-(EXP) Rating to Class F Debt
I T A L Y
GOLDEN BAR 2023-2: DBRS Confirms BB Rating on Class E Notes
M A C E D O N I A
NORTH MACEDONIA: Fitch Rates Proposed Euro-Denominated Bonds 'BB+'
S P A I N
SAPIENCIA BIDCO: Moody's Assigns First Time B2 Corp. Family Rating
S W E D E N
HEIMSTADEN BOSTAD: Fitch Rates New EUR500MM Hybrid Bond 'BB(EXP)'
T U R K E Y
ALBARAKA TURK: Fitch Hikes LongTerm IDRs to B+
U K R A I N E
HOLDCO MHP SE: S&P Places 'CCC' LT ICR on CreditWatch Positive
U N I T E D K I N G D O M
HARLOW TOWN FC: MHA Advisory Named as Administrators
IMPROVEMENT HOUSE: South West & Wales Named as Administrators
NOBLE EVENTS: KRE Corporate Named as Administrators
PLANOVA LEEDS: RSM UK Restructuring Named as Administrators
TOGETHER ASSET 2024-2ND1: DBRS Confirms BB(low) Rating on F Notes
ZHONG LUN: Quantuma Advisory Appointed as Administrators
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A R M E N I A
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ARDSHINBANK OJSC: Fitch Rates Upcoming Unsec. Notes 'BB-(EXP)'
--------------------------------------------------------------
Fitch Ratings has assigned Ardshinbank OJSC's upcoming issue of US
dollar-denominated senior unsecured Eurobonds an expected
'BB-(EXP)' rating.
The bonds will be issued by Ardshinbank's special-purpose vehicle,
Dilijan Finance B.V. (Netherlands), which will on-lend the proceeds
to the bank. The issue size and tenor are yet to be determined.
The final rating is contingent on the receipt of final documents
conforming to information already received.
Key Rating Drivers
The expected rating is in line with Ardshinbank's Long-Term Issuer
Default Rating (IDR) of 'BB-', as the notes will represent
unconditional, senior unsecured obligations of the bank, with
average recovery prospects for noteholders in a default.
Ardshinbank's 'BB-' IDR is driven by the bank's standalone credit
profile, as captured by its Viability Rating. The ratings reflect
the bank's large domestic franchise, albeit with limited pricing
power in a rather granular banking sector; strong profitability,
which underpins its high capital ratios; and ample liquidity. These
factors are balanced by Fitch's assessment of the cyclical
operating environment in Armenia, and credit risks resulting from a
highly dollarised and concentrated economy.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The senior debt rating could be downgraded following a downgrade of
the IDR.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The senior debt rating could be upgraded following an upgrade of
the IDR.
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F R A N C E
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TEREOS SCA: Fitch Gives 'BB(EXP)' Rating to EUR300MM Unsec. Notes
-----------------------------------------------------------------
Fitch Ratings has assigned Tereos SCA's announced EUR300 million
senior unsecured notes an expected 'BB(EXP)' rating with a Recovery
Rating of 'RR4'. The notes will be issued by Tereos Finance Groupe
I SA (Finco). Fitch has affirmed Tereos's Long-Term Issuer Default
Rating (IDR) at 'BB'/Stable, following the update of its Corporate
Rating Criteria and the Sector Navigators Addendum to the Corporate
Rating Criteria dated 9 January 2026.
The assignment of the final rating is contingent on the placement
of the notes with final documents materially conforming with the
information already received by Fitch.
The rating reflects Tereos's moderate product diversification, and
a mid-sized scale compared with global commodity traders. Rating
strengths are its resilient market position as the world's
second-largest sugar producer, with an asset-heavy business model,
operations and raw material sources spread across Europe and Latin
America.
Key Rating Drivers
Average Bond Recovery Prospects: The notes are rated in line with
other senior unsecured debt outstanding at Finco and with Tereos's
'BB' IDR. The moderate share of prior-ranking debt adjusted for
readily marketable inventories (RMI) at Tereos's operating entities
at 40% (1.5x consolidated EBITDA as of September 2025) and the
share of secured debt (about 14% of total) indicate a limited
impact on recovery prospects for the unsecured debt raised by
Finco. Tereos plans to use the proceeds to repay its 2027 notes
ahead of maturity, in one or multiple instalments.
Profit Decline in FY26: Fitch said, "We assume Tereos's EBITDA will
fall below EUR400 million in FY26 (financial year ending March) and
its margin will decline towards 7.3%, the lowest in the past five
years, mainly driven by profits at its European business declining.
A decline in sugar prices of over 30% in Europe in 2025, due to
market surplus following increased supply in the region, led to a
material EBITDA contraction in 1HFY26. Together with lower margins
in international operations and starch and sweeteners decisions and
the lack of sugar price recovery in early 2026, this suggests
limited recovery in 2HFY26."
Fitch assumes only moderate price recovery from FY27, driven by
Fitch's expectation of reduced planting areas for sugar beet in
Europe for the harvesting campaign that will start in 2026.
Combined with ongoing efficiency gains, this should drive EBITDA
margin recovery at Tereos's European operations towards a
through-the-cycle average of 10%-11% from FY27.
Moderate Global Price Correction: Fitch said, "We assume only
gradual recovery in global sugar prices for FY27-FY29, with higher
mid-cycle sugar prices than the pre-peak levels of 2022-2024, as
the global sugar balance is likely to gradually normalise. Sugar
and ethanol prices are also exposed to volatility due to their link
to the oil industry: ethanol is used as a competitively priced
input to be blended with gasoline, while sugar cane is used to
produce sugar and ethanol. Ethanol prices in Brazil benefit from
favourable legislation for customers using ethanol as vehicle
fuel."
Temporary Spike in Leverage: Fitch said, "We anticipate
Fitch-calculated RMI-adjusted net leverage will increase to 5.9x in
FY26 on weaker EBITDA before reducing to 4.4x in FY27 and
normalising below 4x from FY28. We assume profitability recovery
will be supported by gains from an optimised industrial set-up and
savings from operating efficiency and decarbonisation initiatives,
in addition to a normalising sugar market and recovering sales
volumes in Brazil. Fitch-calculated EBITDA remaining above EUR600
million on a through-the-cycle basis is a key factor supporting the
Stable Outlook."
Negative FCF in FY26: Fitch said, "We expect free cash flow (FCF)
margins to turn negative in the mid-single digits in FY26, mainly
driven by a reduction in EBITDA. We assume FCF will be partly
supported by capex normalising from high levels in FY25 and the
release of some working capital based on our sugar price
assumptions. We also expect FCF in FY26-FY27 to be supported by
moderated dividends and price complements payments to farmers,
which we treat as shareholder distributions, linked to group
profits and sugar prices. We project FCF margins to be neutral from
FY28."
Consistent Financial Policy: Fitch said, "Tereos's commitment to
its financial policy supports the Stable Outlook, given its
exhausted rating headroom. Tereos aims to keep its net leverage
below 3.0x over the medium term (excluding EUR244 million in
factoring in FY25, which we add back to our debt calculation),
which should translate into RMI-adjusted net leverage sustainably
below 3.0x, based on our forecast of through-the-cycle EBITDA of
EUR600 million-700 million."
Cost Structure Flexibility: Tereos buys sugar beet from members in
France based on a formula linked to prices in the region with the
flexibility to adjust input beetroot prices, which helps soften the
EBITDA impact when market prices are low. The expected impact of
FY25-FY26 price decline underlines Tereos's exposure to EBITDA
margin swings, but to a lower extent than some of its peers. The
resilience of Tereos's profitability in Brazil is supported by
vertical integration, with about 50% of sugar cane farmed in-house,
and the ability to switch between sugar and ethanol production,
according to products' varying profitability.
Strong Market Position: Tereos's business profile is commensurate
with the mid-to-high end of the 'BB' rating category through the
cycle, reflecting its large operational scope, strong position in
the commodity market and moderate long-term growth prospects.
Diversified production in the EU and Brazil, presence in starches
and sweeteners and expansion in protein products reduce its
reliance on sugar and ethanol operations. This is balanced by the
inherent volatility of its business profile, which together with
its moderate scale, continues to constrain the rating to 'BB'.
Peer Analysis
Tereos's rating is three notches below those of larger and
significantly more diversified commodity traders and processors,
Viterra Limited (not rated) and Bunge Global SA (BBB+/Stable).
Tereos has high profitability due to its large presence in
processing, while the two peers are more exposed to trading and
have EBITDA margins of low-to-mid-single digits compared with a
Fitch-projected through-the-cycle margin of about 11% for Tereos.
Fitch said, "We rate Tereos at the same level as Andre Maggi
Participacoes S.A. (Amaggi; BB/Stable), an integrated agribusiness
company based in Brazil. Both companies have an asset-heavy
business model. Tereos now has higher EBITDA and better geographic
diversification in commodity sourcing, whereas Amaggi is heavily
reliant on one region, but has slightly lower RMI-adjusted net
leverage and a marginally stronger liquidity ratio. Tereos's rating
further benefits from its conservative financial policy."
Tereos is rated two notches above Aragvi Holding International
Limited (B+/Stable), as it has greater scale, wider sourcing
markets and lower operating environment risks, as well as a
stronger asset base and a longer operating record, although both
companies have comparable product concentration. Raizen S.A.
(BBB-/Rating Watch Negative), the leading sugar and ethanol
producer in Brazil, benefits from implicit support from
shareholders, much bigger scale and lower leverage, which explains
the three-notch differential.
Fitch's Key Rating-Case Assumptions
- An average USD/EUR1.11 and USD/BRL5.2 over FY25-FY28
- Revenue to decline 13% in FY26 before growing by 4% in FY27,
followed by low single-digit annual growth in FY28-FY29
- International No.11 sugar price averaging at USD0.18/pound in
FY26, gradually improving to USD0.19/pound over FY27-FY29
- Fitch-adjusted EBITDA margin of 7.3% in FY26, before recovering
towards 12% to FY29
- Annual average capex of about EUR380 million in FY26-FY29
- Dividends per share (including price complements to cooperative
members) paid to cooperative members of EUR45 million in FY26,
EUR38 million in FY27, EUR60 million each in FY28 and FY29
- No material asset divestments or M&As over FY26-FY29
- Credit lines used to finance operations renewed
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
to produce the Standalone Credit Profile:
- The business and financial profile factors are assessed (in the
format of the 'assessment', followed by relative importance) as
follows: management ('bb+', moderate), sector characteristics
('bb+', low), market and competitive positioning ('bb+', high),
diversification and asset quality ('bb+', moderate), company
operational characteristics ('bbb+', moderate), profitability
('bbb-', moderate), financial structure ('b+', high), and financial
flexibility ('bb+', moderate).
- The quantitative financial subfactors are assessed based on
custom financial period parameters of 20% weight for FY25, 10% for
FY26, 10% for FY27, 30% for FY28 and 30% for FY29.
- The governance assessment of 'Good' results in no adjustment.
- The operating environment assessment of 'a+' results in no
adjustment.
- The Standalone Credit Profile is 'bb'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Reduced financial flexibility, as reflected in EBITDA interest
coverage (RMI-adjusted) falling permanently below 3.0x, or an
inability to maintain adequate availability under committed
medium-term credit lines
- Liquidity ratio (cash and marketable securities plus RMI plus
account receivables/total short-term liability) below 0.7x on a
sustained basis
- EBITDA falling below EUR600 million on a sustained basis
- Consolidated (RMI-adjusted) EBITDA net leverage above 4.0x on a
sustained basis
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Greater diversification of operations by sourcing and processing
region or by commodity
- Maintenance of an EBITDA margin of at least 12%, reflecting the
benefits of vertical integration
- Strict financial discipline and maintenance of positive FCF on a
sustained basis
- Consolidated (RMI-adjusted) EBITDA net leverage, consistently
below 3x and EBITDA/net interest coverage (RMI-adjusted) of at
least 4.5x
- Liquidity ratio improving towards 1x on a sustained basis
Liquidity and Debt Structure
Tereos's internal liquidity score remained unchanged at 0.7x at
FYE25 (defined as unrestricted cash plus RMI and accounts
receivables divided by total current liabilities). It has
sufficient resources of EUR836 million of undrawn committed
revolving credit facilities at FYE25 and EUR478 million of cash
balance, which despite Fitch's projection of negative FCF of EUR213
million should be sufficient to cover the debt due in FY26 and
other liquidity needs.
Issuer Profile
Tereos is the world's second-largest sugar, alcohol and ethanol
producer, and the third-largest starch producer in Europe. The
company is a cooperative, with about 10,200 cooperative farmer
shareholders that are based in France and supply sugar beet to the
group.
RATING ACTIONS
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Tereos Finance Groupe I SA
senior unsecured LT BB(EXP) Expected RR4
Rating
senior unsecured LT BB Affirmed RR4 BB
Tereos SCA
LT IDR BB Affirmed BB
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I R E L A N D
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ANCHORAGE CAPITAL 13: Fitch Rates Class F Debt 'B-sf'
-----------------------------------------------------
Fitch Ratings has assigned Anchorage Capital Europe CLO 13 DAC
final ratings.
RATING ACTIONS
Entity/Debt Rating
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Anchorage Capital Europe CLO 13 DAC
Class A Loan LT AAAsf New Rating
Class A Notes XS3226013368 LT AAAsf New Rating
Class B XS3226013442 LT AAsf New Rating
Class C XS3226013871 LT Asf New Rating
Class D XS3226013954 LT BBB-sf New Rating
Class E XS3226014093 LT BB-sf New Rating
Class F XS3226014259 LT B-sf New Rating
Subordinated Notes XS3226016031 LT NRsf New Rating
Transaction Summary
Anchorage Capital Europe CLO 13 DAC is a securitisation of mainly
senior secured obligations (at least 90%) with a component of
unsecured senior loans, unsecured senior bonds, second lien loans,
mezzanine obligations and high yield bonds. Net proceeds from the
notes have been used to fund a portfolio with a target par of
EUR400 million. The portfolio is actively managed by Anchorage CLO
ECM, L.L.C. The CLO has a 4.5-year reinvestment period and an 8.5
weighted average life (WAL) test.
KEY RATING DRIVERS
Average Portfolio Credit Quality (Neutral): Fitch considers the
average credit quality of obligors to be in the 'B' category. The
Fitch-calculated weighted average rating factor of the identified
portfolio is 22.8.
High Recovery Expectations (Positive): At least 90% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch-calculated
weighted average recovery rate of the identified portfolio is 60%.
Diversified Asset Portfolio (Positive): The transaction has various
other portfolio concentration limits, including a maximum exposure
to the three largest Fitch-defined industries at 40%. These
covenants ensure that the asset portfolio will not be exposed to
excessive concentration.
Portfolio Management (Neutral): The deal includes two Fitch test
matrices that are effective at closing. These correspond to a top
10 obligor concentration limit of 20%, two fixed-rate asset limits
at 5% and 12.5% and an 8.5-year WAL. It has another two matrices,
corresponding to the same limits but an eight-year WAL, which can
be selected by the manager six months after closing and an
additional two matrices that the manager can switch to 18 months
after closing with the same limits and a seven-year WAL covenant,
provided that the collateral principal amount (including defaulted
obligations at Fitch collateral value) is at least at the
reinvestment target par balance.
The transaction has a 4.5-year reinvestment period, which is
governed by reinvestment criteria similar to those of other
European transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the transaction
structure against its covenants and portfolio guidelines.
Cash Flow Modelling (Neutral): The WAL used for the transaction's
stress portfolio analysis and matrices analysis is 12 months less
than the WAL covenant at the issue date, to account for the strict
reinvestment conditions envisaged by the transaction after its
reinvestment period. These include, among others, passing the
coverage tests and the Fitch 'CCC' maximum limit, as well as a WAL
covenant that progressively steps down before and after the end of
the reinvestment period. Fitch believes these conditions would
reduce the effective risk horizon of the portfolio during the
stress period.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings of
the identified portfolio would have no impact on the class A to C
notes and lead to downgrades of one notch for the class E notes,
and to below 'B-sf' for the class F notes.
Based on the identified portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio than
the Fitch-stressed portfolio, the class F notes display a rating
cushion of one notch, the class B, D, and E notes of two notches
and the class C notes three notches. The class A notes are at the
highest achievable rating and therefore have no rating cushion.
Should the cushion between the identified portfolio and the
Fitch-stressed portfolio be eroded either due to manager trading or
negative portfolio credit migration, a 25% increase of the mean RDR
across all ratings and a 25% decrease of the RRR across all ratings
of the Fitch-stressed portfolio would lead to downgrades of up to
three notches for the class A and C notes, four notches for the
class B and C notes, and to below 'B-sf' for the class E and F
notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A 25% reduction of the mean RDR across all ratings and a 25%
increase in the RRR across all ratings of the Fitch-stressed
portfolio would lead to upgrades of up to two notches for the
notes, except for the 'AAAsf' rated notes, which are at the highest
level on Fitch's scale and cannot be upgraded.
During the reinvestment period, based on the Fitch-stressed
portfolio, upgrades may occur on better-than-expected portfolio
credit quality and a shorter remaining WAL test, allowing the notes
to withstand larger-than-expected losses for the remaining life of
the transaction.
After the end of the reinvestment period, upgrades may result from
stable portfolio credit quality and deleveraging, leading to higher
credit enhancement and excess spread available to cover losses in
the remaining portfolio.
AVOCA CLO XXI: S&P Assigns B-(sf) Rating on Class F-R Notes
-----------------------------------------------------------
S&P Global Ratings assigned its ratings to Avoca CLO XXI DAC's
class X-R, A-R, B-R, C-R, D-R, E-R, and F-R notes. At closing, the
issuer also issued unrated subordinated notes.
This transaction is a reset of the already existing transaction. At
closing, the existing classes of notes were fully redeemed with the
proceeds from the issuance of the replacement notes on the reset
date. The ratings on the original notes have been withdrawn.
The ratings assigned to Avoca CLO XXI's reset notes reflect S&P's
assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which is bankruptcy remote.
-- The transaction's counterparty risks, which are in line with
S&P's counterparty rating framework.
Portfolio benchmarks
S&P Global Ratings' weighted-average rating factor 2,896.44
Default rate dispersion 477.09
Weighted-average life (years) 4.23
Obligor diversity measure 182.59
Industry diversity measure 22.43
Regional diversity measure 1.26
Transaction key metrics
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 2.48
Actual 'AAA' weighted-average recovery (%) 36.21
Actual weighted-average spread (%) 3.65
Actual weighted-average coupon (%) 4.77
Country concentration in sovereigns rated below 'AA-' (%) 25.98
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 approximately 4.50 years after
closing.
The portfolio is well-diversified at closing, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
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 modeled a target par of
EUR400 million. We also modeled the covenanted weighted-average
spread (3.60%), the covenanted weighted-average coupon (4.50%), and
the actual 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.
"Under our structured finance sovereign risk criteria, we consider
the transaction's exposure to country risk 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.
"The CLO is managed by KKR Credit Advisors (Ireland) Unlimited Co.,
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 ratings are
commensurate with the available credit enhancement for the 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
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)' 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 24.81% (for a portfolio with a
weighted-average life of 4.50 years), versus if we were to consider
a long-term sustainable default rate of 3.2% for 4.50 years, which
would result in a target default rate of 14.40%."
-- 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.
"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 X-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."
Avoca CLO XXI 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 is
managed by KKR Credit Advisors (Ireland) Unlimited Co.
Ratings
Amount Credit
Class Rating* (mil. EUR) Interest rate§ enhancement
(%)
X-R AAA (sf) 4.00 Three/six-month EURIBOR 38.00
plus 1.00%
A-R AAA (sf) 248.00 Three/six-month EURIBOR 38.00
plus 1.30%
B-R AA (sf) 40.25 Three/six-month EURIBOR 27.94
plus 1.90%
C-R A (sf) 24.00 Three/six-month EURIBOR 21.94
plus 2.10%
D-R BBB- (sf) 29.75 Three/six-month EURIBOR 14.50
plus 3.05%
E-R BB- (sf) 20.00 Three/six-month EURIBOR 9.50
plus 5.35%
F-R B- (sf) 12.00 Three/six-month EURIBOR 6.50
plus 8.56%
Sub notes NR 38.70 N/A N/A
*The ratings assigned to the class X-R, 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.
CVC CORDATUS XII: Fitch Rates Class F-R Debt 'B-sf'
---------------------------------------------------
Fitch Ratings has assigned CVC Cordatus Loan Fund XII DAC reset
notes final ratings.
RATING ACTIONS
Entity/Debt Rating Prior
----------- ------ -----
CVC Cordatus Loan Fund XII DAC
A-1-R XS2325581481 LT PIFsf Paid In Full AAAsf
A-2-R XS2325581994 LT PIFsf Paid In Full AAAsf
A-R-R XS3244866821 LT AAAsf New Rating
B-1-R XS2325582612 LT PIFsf Paid In Full AA+sf
B-2-R XS2325583263 LT PIFsf Paid In Full AA+sf
B-R-R XS3244867126 LT AAsf New Rating
C-R XS2325583933 LT PIFsf Paid In Full A+sf
C-R-R XS3244867472 LT Asf New Rating
D XS1899142886 LT PIFsf Paid In Full BBB+sf
D-R XS3244867639 LT BBB-sf New Rating
E XS1899143934 LT PIFsf Paid In Full BB+sf
E-R XS3244867803 LT BB-sf New Rating
F XS1899143421 LT PIFsf Paid In Full Bsf
F-R XS3244868017 LT B-sf New Rating
Transaction Summary
CVC Cordatus Loan Fund XII DAC is a securitisation of mainly (at
least 90%) senior secured obligations with a component of senior
unsecured, mezzanine, second lien loans and high-yield bonds. Note
proceeds have been used to redeem the existing notes (except the
subordinated notes) and to fund the existing portfolio with a
target par of EUR400 million.
The portfolio is actively managed by CVC Credit Partners Investment
Management Limited. The CLO has a three-year reinvestment period
and a seven-year weighted average life (WAL) test at closing.
KEY RATING DRIVERS
Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors at 'B'/'B-'. The Fitch-weighted
average rating factor of the identified portfolio is 25.1.
High Recovery Expectations (Positive): At least 90% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch-weighted
average recovery rate of the identified portfolio is 58.3%.
Diversified Portfolio (Positive): The reset transaction includes
one matrix set at closing. The matrix set comprises two matrices
with fixed-rate asset limits of 5% and 12.5%. The transaction
includes various portfolio concentration limits, including a top 10
obligor concentration limit of 20% and a maximum exposure to the
three largest Fitch-defined industries of 40%. These covenants
ensure the asset portfolio will not be exposed to excessive
concentration.
Portfolio Management (Neutral): The transaction has a three-year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.
Cash Flow Modelling (Positive): The WAL for the transaction's
Fitch-stressed portfolio analysis is 12 months shorter than the WAL
covenant. This is to account for the strict reinvestment conditions
envisaged by the transaction after its reinvestment period, which
include passing the coverage tests and the Fitch 'CCC' bucket
limitation test after reinvestment as well as a WAL covenant that
gradually steps down, before and after the end of the reinvestment
period. Fitch believes these conditions would reduce the effective
risk horizon of the portfolio during stress periods.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings of
the identified portfolio would have no impact on the class A-R-R
notes and would lead to downgrades of two notches for the class
C-R-R and E-R notes, one notch for the class B-R-R and D-R notes
and to below 'B-sf' for the class F-R notes.
Downgrades are based on the identified portfolio. They may occur if
the loss expectation is larger than initially assumed, due to
unexpectedly high levels of default and portfolio deterioration.
Due to the better metrics and shorter life of the identified
portfolio than the Fitch-stressed portfolio, the rated notes each
display a rating cushion of up to two notches.
Should the cushion between the identified portfolio and the
Fitch-stressed portfolio be eroded either due to manager trading or
negative portfolio credit migration, a 25% increase of the mean RDR
and a 25% decrease of the RRR of the Fitch-stressed portfolio
across all ratings would lead to downgrades of up to two notches
for the class A -R-R to D-R, three notches for the class E-R notes
and to below 'B-sf' for the class F-R notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A 25% reduction of the mean RDR across all ratings and a 25%
increase in the RRR across all ratings of the Fitch-stressed
portfolio would lead to upgrades of up to five notches for the
notes, except the 'AAAsf' notes, which are at the highest level on
Fitch's scale and cannot be upgraded.
During the reinvestment period, based on the Fitch-stressed
portfolio, upgrades may occur on better-than-expected portfolio
credit quality and a shorter remaining WAL test, allowing the notes
to withstand larger-than-expected losses for the remaining life of
the transaction. After the end of the reinvestment period, upgrades
may result from stable portfolio credit quality and deleveraging,
leading to higher credit enhancement and excess spread available to
cover losses in the remaining portfolio.
HENLEY CLO XV: S&P Assigns B-(sf) Rating on Class F Notes
---------------------------------------------------------
S&P Global Ratings assigned credit ratings to Henley CLO XV DAC's
class A to F notes. At closing, the issuer also issued unrated
subordinated notes.
Under the transaction documents, the rated notes pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will permanently switch to semiannual payments.
The portfolio's reinvestment period will end approximately five
years after closing, while the noncall period will end
approximately two years after closing.
The 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 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 2,810.66
Default rate dispersion 416.07
Weighted-average life (years) 5.37
Obligor diversity measure 128.51
Industry diversity measure 21.90
Regional diversity measure 1.25
Transaction key metrics
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 0.50
Actual 'AAA' weighted-average recovery (%) 36.28
Actual weighted-average spread (net of floors; %) 3.86
Actual weighted-average coupon (%) 5.95
S&P said, "Our ratings reflect our assessment of the collateral
portfolio's credit quality, which has a weighted-average rating of
'B'. We understand that the portfolio is well-diversified,
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 (3.86%), the actual
weighted-average coupon (5.95%), and the actual portfolio
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 Jan. 15, 2031, 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 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 current counterparty criteria.
"The transaction's legal structure and framework is bankruptcy
remote. The issuer is a special-purpose entity that meets our
criteria for bankruptcy remoteness.
"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
the effective date, during which the transaction's credit risk
profile could deteriorate, we have capped our ratings assigned to
the notes."
The class A and F notes can withstand stresses commensurate with
the assigned ratings.
S&P said, "Following our analysis of the credit, cash flow,
counterparty, operational, and legal risks, we believe our ratings
are commensurate with the available credit enhancement for the
class A to F 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 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 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. 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."
Ratings
Amount Credit
Class Rating* (mil. EUR) enhancement (%) Interest rate§
A AAA (sf) 248.00 38.00 Three/six-month EURIBOR
plus 1.28%
B AA (sf) 42.20 27.45 Three/six-month EURIBOR
plus 1.85%
C A (sf) 25.80 21.00 Three/six-month EURIBOR
plus 2.15%
D BBB- (sf) 28.00 14.00 Three/six-month EURIBOR
plus 2.90%
E BB- (sf) 18.00 9.50 Three/six-month EURIBOR
plus 5.35%
F B- (sf) 12.00 6.50 Three/six-month EURIBOR
plus 8.20%
Sub. Notes NR 28.90 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 EURIBOR when a frequency switch event occurs.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable.
MADISON PARK XIII: S&P Assigns B-(sf) Rating on Class F-R Notes
---------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Madison Park Euro
Funding XIII DAC's class A-1-R to F-R notes. At closing, the issuer
had EUR44.50 million subordinated notes outstanding from the
existing transaction and also issued EUR7.80 million of additional
subordinated notes.
This transaction is a reset of the already existing transaction
that S&P did not rate. The issuance proceeds of the refinancing
debt were used to redeem the refinanced debt, and pay fees and
expenses incurred in connection with the reset.
The portfolio's reinvestment period will end approximately 4.5
years after closing, while the noncall period will end 1.5 years
after closing.
The 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 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 2,698.75
Default rate dispersion 629.52
Weighted-average life (years) 3.70
Weighted-average life extended to cover
the length of the reinvestment period (years) 4.50
Obligor diversity measure 130.16
Industry diversity measure 20.21
Regional diversity measure 1.17
Transaction key metrics
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 2.29
Target 'AAA' weighted-average recovery (%) 36.26
Target weighted-average coupon (%) 4.41
Target weighted-average spread (net of floors; %) 3.82
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, "The portfolio is 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 EUR500 million target par
amount, the covenanted weighted-average spread (3.65%), and the
covenanted weighted-average coupon (4.00%) as indicated by the
collateral manager. We have assumed the targeted weighted-average
recovery rates at all rating levels (36.26% 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-R to E-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 July 15, 2030, during which the transaction's
credit risk profile could deteriorate, we have capped the assigned
ratings.
"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 current counterparty criteria.
"The transaction's legal structure and framework is bankruptcy
remote, in line with our legal criteria.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for the class
A-1-R to F-R notes.
"In addition to our standard analysis, to provide an indication of
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-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 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."
Ratings
Amount Credit
Class Rating* (mil. EUR) enhancement (%) Interest rate§
A-1-R AAA (sf) 305.00 39.00 Three/six-month EURIBOR
plus 1.32%
A-2-R AAA (sf) 5.00 39.00 Three/six-month EURIBOR
plus 1.80%
B-R AA (sf) 52.50 27.50 Three/six-month EURIBOR
plus 2.00%
C-R A (sf) 31.25 21.25 Three/six-month EURIBOR
plus 2.40%
D-R BBB- (sf) 36.25 14.00 Three/six-month EURIBOR
plus 3.55%
E-R BB- (sf) 22.50 9.50 Three/six-month EURIBOR
plus 6.20%
F-R B- (sf) 15.00 6.50 Three/six-month EURIBOR
plus 8.73%
Sub NR 52.30 N/A N/A
*The ratings assigned to the class A-1-R, A-2-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.
NEUBERGER BERMAN 8: S&P Assigns B-(sf) Rating on Class F Notes
--------------------------------------------------------------
S&P Global Ratings assigned its ratings to Neuberger Berman Loan
Advisers Euro CLO 8 DAC's class A-1, A-2, B, C, D, E, and F notes.
The issuer also issued unrated subordinated notes.
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's reinvestment period ends approximately 4.5 years
after closing and its non-call period ends 1.5 years after
closing.
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 experience of the collateral manager's 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 2,693.51
Default rate dispersion 514.48
Weighted-average life (years) including
reinvestment period 4.68
Obligor diversity measure 159.67
Industry diversity measure 21.44
Regional diversity measure 1.37
Transaction key metrics
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 0.29
'AAA' weighted-average recovery (%) on identified pool 36.64
Target weighted-average spread (no credit to floors; %) 3.61
Target weighted-average coupon (%) 3.81
S&P said, "The portfolio is well-diversified at closing. 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 modelled the EUR300 million target
par amount, the covenanted weighted-average spread of 3.57%, the
covenanted weighted-average coupon of 3.70%, and the identified
weighted-average recovery for all rating levels. We applied various
cash flow stress scenarios, using four different default patterns,
in conjunction with different interest rate stress scenarios for
each liability rating category.
"Our credit and cash flow analysis shows that the class B to E
notes benefit from break-even default rate and scenario default
rate cushions that we would typically consider to be in line with
higher ratings than those assigned. However, as the CLO is still in
its reinvestment phase, during which the transaction's credit risk
profile could deteriorate, we have capped our ratings on the notes.
The class A-1, A-2, and F notes can withstand stresses commensurate
with the assigned ratings."
Until July 15, 2030, when the reinvestment period ends, the
collateral manager may substitute the assets in the portfolio, as
long the 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, cause the transaction's
credit risk profile to deteriorate.
S&P said, "Under our structured finance sovereign risk criteria, we
consider that 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 current counterparty criteria.
"The transaction's legal structure and framework is bankruptcy
remote. The issuer is a special-purpose entity that meets our
criteria for bankruptcy remoteness.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for the class
A-1 to F 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 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 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."
Ratings
Amount Credit
Class Rating* (mil. EUR) enhancement (%) interest rate§
A-1 AAA (sf) 183.00 39.00 Three/six-month EURIBOR
plus 1.280%
A-2 AAA (sf) 6.00 37.00 Three/six-month EURIBOR
plus 1.735%
B AA (sf) 28.50 27.50 Three/six-month EURIBOR
plus 1.900%
C A (sf) 19.50 21.00 Three/six-month EURIBOR
plus 2.200%
D BBB- (sf) 21.00 14.00 Three/six-month EURIBOR
plus 3.000%
E BB- (sf) 14.25 9.25 Three/six-month EURIBOR
plus 5.300%
F B- (sf) 8.25 6.50 Three/six-month EURIBOR
plus 8.100%
Sub. NR 26.00 NA N/A
*S&P's ratings address payment of timely interest and ultimate
principal on the class A-1, A-2, and B notes and ultimate interest
and principal on the rest of the notes.
§The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable.
PENTA CLO 21: Fitch Gives B-(EXP) Rating to Class F Debt
--------------------------------------------------------
Fitch Ratings has assigned Penta CLO 21 DAC expected ratings.
RATING ACTIONS
Entity/Debt Rating
----------- ------
Penta CLO 21 DAC
A LT AAA(EXP)sf Expected Rating
B LT AA(EXP)sf Expected Rating
C LT A(EXP)sf Expected Rating
D LT BBB-(EXP)sf Expected Rating
E LT BB-(EXP)sf Expected Rating
F LT B-(EXP)sf Expected Rating
Subordinated
Notes LT NR(EXP)sf Expected Rating
Transaction Summary
Penta CLO 21 DAC is a securitisation of mainly senior secured loans
and secured senior bonds (at least 90%), with a component of senior
unsecured, mezzanine and second-lien loans. Note proceeds will be
used to fund a portfolio with a target par of EUR400 million. The
portfolio is actively managed by Partners Group (UK) Management
Ltd. The CLO has a 4.6-year reinvestment period and an 8.5-year
weighted average life (WAL) test.
KEY RATING DRIVERS
Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors to be in the 'B' category. The
Fitch weighted average rating factor of the identified portfolio is
24.0.
High Recovery Expectations (Positive): At least 90% of the
portfolio will comprise senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate of the identified portfolio is 59.6%.
Diversified Asset Portfolio (Positive): The transaction will
include various concentration limits in the portfolio, including a
top 10 obligor concentration limit of 20% and a maximum exposure to
the three largest (Fitch-defined) industries in the portfolio of
40%. These covenants ensure the asset portfolio will not be exposed
to excessive concentration.
Portfolio Management (Neutral): The transaction will have a
4.6-year reinvestment period and reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.
The transaction includes three Fitch test matrix sets, each
comprising two matrices that correspond to two fixed-rate asset
limits of 5% and 10%. All matrices correspond to a top 10 obligor
limit at 20%. One set is effective at closing, corresponding to an
8.5-year WAL test. Another set, which corresponds to a 7.5-year WAL
test, is effective 12 months after closing. The third set
corresponds to a seven-year WAL test and is effective 18 months
after closing. Switching to the forward matrices is subject to the
satisfaction of the reinvestment target par condition.
Cash Flow Modelling (Positive): The WAL used for the transaction's
stress portfolio analysis has been reduced by one year, down to 7.5
years. This accounts for the strict reinvestment conditions
envisaged by the transaction after its reinvestment period. These
conditions include passing both the coverage tests and the Fitch
'CCC' maximum limit, together with a WAL covenant that gradually
steps down, before and after the end of the reinvestment period.
Fitch believes these conditions would reduce the effective risk
horizon of the portfolio during the stress period.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings of
the identified portfolio would have no impact on the class A notes
and lead to a downgrade of no more than one notch each for the
class B, C, D, and E notes and to below 'B-sf' for the class F
notes.
Based on the identified portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio than
the Fitch-stressed portfolio, the class B, C, D, E, and F notes
display rating cushions of two notches and the class A notes have
no rating cushion.
Should the cushion between the identified portfolio and the
Fitch-stressed portfolio be eroded either due to manager trading or
negative portfolio credit migration, a 25% increase of the mean RDR
across all ratings and a 25% decrease of the RRR across all ratings
of the Fitch-stressed portfolio would lead to downgrades of up to
four notches for the notes and to below 'B-sf for E and F notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A 25% reduction in the mean RDR and a 25% increase in the RRR
across all ratings of the Fitch-stressed portfolio would lead to
upgrades of up to two notches for the class B, C, D and E notes and
three notches for the class F notes. The class A notes are rated
'AAAsf', the highest level on Fitch's scale and cannot be
upgraded.
During the reinvestment period, based on the Fitch-stressed
portfolio, upgrades may occur on better-than-expected portfolio
credit quality and a shorter remaining WAL test, allowing the notes
to withstand larger-than-expected losses for the transaction's
remaining life. After the end of the reinvestment period, upgrades
may result from stable portfolio credit quality and deleveraging,
leading to higher credit enhancement and excess spread to cover
losses in the remaining portfolio.
=========
I T A L Y
=========
GOLDEN BAR 2023-2: DBRS Confirms BB Rating on Class E Notes
-----------------------------------------------------------
DBRS Ratings GmbH confirmed its credit ratings on the notes
(collectively, the rated notes) issued by Golden Bar
(Securitization) S.r.l. - Series 2023-2 (the Issuer) as follows:
-- Class A-2023-2 (Class A Notes) at AAA (sf)
-- Class B-2023-2 (Class B Notes) at AA (low) (sf)
-- Class C-2023-2 (Class C Notes) at A (sf)
-- Class D-2023-2 (Class D Notes) at BBB (sf)
-- Class E-2023-2 (Class E Notes) at BB (sf)
The credit rating on the Class A Notes addresses the timely payment
of scheduled interest and the ultimate repayment of principal on or
before the final maturity date in September 2043. The credit
ratings on the Class B to Class E Notes address the ultimate
payment of scheduled interest (or timely when most senior class
outstanding) and the ultimate repayment of principal by the final
maturity date.
CREDIT RATING RATIONALE
The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:
-- Portfolio performance, in terms of delinquencies, defaults, and
losses, as of the December 2025 payment date;
-- Probability of default (PD), loss given default (LGD), and
expected loss assumptions on the remaining receivables; and
-- Current available credit enhancement to the notes to cover the
expected losses at their respective credit rating levels.
The Issuer is a securitization of fixed-receivables related to
standard and balloon auto loans granted and serviced by Santander
Consumer Bank S.p.A. (SCB) to private individuals and sole
proprietors in the Republic of Italy. The transaction closed in
September 2023 with an initial pool balance of EUR 999.85 million
and included a revolving period which ended on the December 2024
payment date, with the rated notes amortizing on a pro rata basis
unless a sequential redemption trigger event occurs.
PORTFOLIO PERFORMANCE
As of the December 2025 payment date, loans 0 to 30, 30 to 60, and
60 to 90 days in arrears represented 0.7%, 0.2% and 0.04% of the
outstanding portfolio balance, respectively. Gross cumulative
defaults, defined as loans more than 90 days in arrears, amounted
to 1.3% of the aggregate original portfolio balance, of which 15.2%
has been recovered so far.
PORTFOLIO ASSUMPTIONS AND KEY DRIVERS
Morningstar DBRS updated its base case PD and LGD assumptions to
2.3% and 56.7%, respectively.
CREDIT ENHANCEMENT
Portfolio overcollateralization provides credit enhancement to the
rated notes. Due to the pro rata amortization of the rated notes,
as of the December 2025 payment date, credit enhancement to the
Class A, Class B, Class C, Class D and Class E Notes remained at
17.0%, 10.5%, 7.3%, 3.9% and 0.0%, respectively.
The transaction benefits from liquidity support provided by a
non-amortizing cash reserve, available to cover senior expenses,
swap payments and interest on the rated notes. As of the December
2025 payment date, the reserve was at its target level of EUR 14.0
million, equal to 1.4% of the Class A to Class E Notes' initial
balance.
The Bank of New York Mellon SA/NV - Milan Branch (BNYM) acts as the
Issuer's account bank for the transaction. Based on Morningstar
DBRS' Long-Term reference rating on BNYM at AA (high), the
downgrade provisions outlined in the transaction documents, and
other mitigating factors inherent in the transaction structure,
Morningstar DBRS considers the risk arising from the exposure to
the account bank to be consistent with the credit rating assigned
to the rated notes, as described in Morningstar DBRS's "Legal and
Derivative Criteria for European and Asia-Pacific Structured
Finance Transactions" methodology.
Banco Santander SA (Santander) acts as the swap counterparty for
the transaction. Morningstar DBRS' Long Term Critical Obligations
Rating on Santander at AA is consistent with the first credit
rating threshold as described in Morningstar DBRS's "Legal and
Derivative Criteria for European and Asia-Pacific Structured
Finance Transactions" methodology.
Notes: All figures are in euros unless otherwise noted.
=================
M A C E D O N I A
=================
NORTH MACEDONIA: Fitch Rates Proposed Euro-Denominated Bonds 'BB+'
------------------------------------------------------------------
Fitch Ratings has assigned North Macedonia's (BB+/Stable) proposed
euro-denominated bonds a 'BB+' rating.
The net proceeds from the sale of the bonds will be used for budget
support in 2026, a cash tender offer for the outstanding EUR700
million notes and refinancing maturing government debt
liabilities.
Key Rating Drivers
The bonds' rating is in line with North Macedonia's Long-Term
Foreign-Currency Issuer Default Rating (IDR).
Fitch affirmed North Macedonia's Long-Term Foreign-Currency IDR at
'BB+', with a Stable Outlook on 19 September 2025.
The following ESG issues represent key rating drivers for the
bonds; other key rating drivers can be found in the issuer rating
action commentary dated 19 September 2025.
ESG - Governance: North Macedonia has an ESG Relevance Score (RS)
of '5[+]' for both Political Stability and Rights and for the Rule
of Law, Institutional and Regulatory Quality, and Control of
Corruption. These scores reflect the high weight that the World
Bank Governance Indicators (WBGI) have in Fitch's proprietary
Sovereign Rating Model. North Macedonia has a medium WBGI ranking
at the 50th percentile, reflecting a recent record of peaceful
political transitions, a moderate level of rights for participation
in the political process, moderate institutional capacity,
established rule of law, and a moderate level of corruption.
The rating on the bonds is sensitive to any changes in North
Macedonia's Long-Term Foreign-Currency IDR, which has the following
rating sensitivities (as per the rating action commentary
referenced above).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Public Finances: A material increase in gross general government
debt (GGGD)/GDP in the medium term due to failure to implement a
credible fiscal consolidation strategy
External Finances: Pressure on foreign-currency reserves or the de
facto currency peg against the euro, caused by a marked
deterioration in the external position
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Public Finances: A sharp and sustained decline in GGGD/GDP
consistent with an improvement in fiscal management and policy
credibility
Structural/Macro: Improvement in medium-term growth prospects or
governance standards, for example, through demonstrated progress
towards EU accession.
=========
S P A I N
=========
SAPIENCIA BIDCO: Moody's Assigns First Time B2 Corp. Family Rating
------------------------------------------------------------------
Moody's Ratings has assigned a first-time B2 long-term corporate
family rating and a B2-PD probability of default rating to
Sapiencia BidCo S.L.U. (Sapiencia), the vehicle that will acquire
Guadarrama Proyectos Educativos, S.L. (Guadarrama), the holding
company that owns Universidad Alfonso X El Sabio (UAX or the
company), a leading private higher education provider in Spain.
Concurrently, Moody's have also assigned B2 instrument ratings to
the proposed EUR740 million senior secured term loan (TL) due 2033
and the EUR120 million senior secured revolving credit facility
(RCF) due 2032, both to be borrowed by Sapiencia BidCo S.L.U. The
outlook is stable.
In October 2025, funds advised by private equity group Cinven,
together with Mubadala—a state-owned global investment firm of
the Government of Abu Dhabi—agreed to acquire an 85% stake in UAX
from private equity sponsor CVC. The transaction values the group
at EUR2.5 billion, implying an EV/EBITDA multiple of 22x based on
Moody's-adjusted EBITDA of EUR112 million for the forecast fiscal
year ending August 2026 (fiscal 2026E). Following the transaction
UAX will be owned by private equity sponsor Cinven (60%),
investment firm Mubadala (25%) and UAX's founder Jesús Nuñez
Velazquez (15%).
The acquisition remains subject to regulatory and antitrust
approvals and is expected to close by March 2026. The financing
package—comprising a EUR740 million TL, a EUR120 million RCF, and
an equity contribution of EUR1.4 billion—will be used to
refinance the company's existing EUR302.5 million TL, fund
acquisition costs of EUR1.8 billion, and cover approximately EUR50
million in transaction fees and expenses.
"The B2 rating balances UAX's leading position in the private
higher education market in Spain, its track record of solid
operating and financial performance, the high revenue and earnings
visibility and predictability, its solid cash flow generation, and
its significant above-peers profitability margins," says Víctor
García Capdevila, a Moody's Ratings Vice President – Senior
Analyst, and lead analyst for UAX.
"However, the rating also factors in the company's high initial
leverage at transaction closing, relatively small scale of
operations, its geographical and campus concentration and its
vulnerability to shifts in the political and regulatory landscape,"
adds Mr. García Capdevila.
RATINGS RATIONALE
Sapiencia's B2 long-term corporate family rating reflects: (1) its
well-established position in the fragmented Spanish private higher
education market, particularly its strong presence in the
high-demand health sciences segment; (2) high barriers to entry;
(3) solid revenue and earnings visibility driven by committed
student enrollments and predominantly upfront tuition payments;
and, (4) solid track record of organic growth across economic
cycles and high profitability levels, with a Moody's-adjusted
EBITDA margin of approximately 43%.
However, the rating is constrained by: (1) the company's limited
operational scale and significant revenue concentration in Spain,
particularly at its main campus in Madrid; (2) moderate free cash
flow generation due to substantial expansionary capex; (3) exposure
to potential changes in the political and regulatory environment;
and (4) the high Moody's-adjusted gross leverage at transaction
closing.
UAX demonstrates a robust track record of earnings visibility and
resilient operating performance, supported by strong growth in new
enrolments, disciplined pricing initiatives, and industry-leading
margins. According to the management team, for the academic year
2025/26, UAX has already secured approximately 99% of its revenue
reflecting the high predictability of its results. The group has
achieved a CAGR of 15.3% in revenue and a CAGR of 13.0% in
Moody's-adjusted EBITDA between fiscal 2020 and fiscal 2025,
reaching EUR237 million and EUR102 million respectively, with a
Moody's-adjusted EBITDA margin of 43%. This performance is
underpinned by consistently strong cash conversion rates above 80%,
low net attrition rates, and a disciplined approach to cost
management, enabling UAX to self-finance new initiatives and
maintain robust deleveraging capabilities. The business has
consistently outperformed its budget at the EBITDA level, further
reinforcing the reliability of its forecasts and the strength of
its academic offering.
The company's Moody's-adjusted gross leverage, pro forma for the
transaction, is estimated at 7.0x for fiscal 2026. Moody's base
case scenario anticipates rapid deleveraging to 5.6x by fiscal
2027, driven by robust Moody's-adjusted EBITDA growth of
approximately 23%, from EUR112 million in fiscal 2026 to EUR138
million in fiscal 2027. This improvement is expected to be
supported by an 8% annual increase in new enrolments,
above-inflation growth in tuition fees, and stable attrition rates
below 5%.
In October 2025, the Spanish Ministry of Science, Innovation and
Universities approved Royal Decree 905/2025, establishing a
significantly more restrictive regulatory framework for private
universities in Spain. While the stricter environment raises
barriers to entry for new competitors, it could also weaken UAX's
credit profile. The new regulation imposes more demanding
requirements on academic program breadth, faculty composition,
research output, and student enrollment thresholds, with limited
transition periods. These changes may increase compliance costs,
constrain operational flexibility, and delay or limit the group's
ability to launch new programs or campuses. Although UAX already
complies with most of the new requirements, certain measures could
pressure margins, slow growth, and heighten execution risk,
particularly for new projects. Moody's considers regulatory risks
to be one of the key constraints on the rating.
The Spanish private higher education sector has consistently
demonstrated resilience across economic cycles, with enrollment
trends outperforming GDP growth even during periods of financial
crisis and the pandemic. This strength is underpinned by favorable
demographics, rising educational aspirations, and systemic capacity
constraints in public universities, particularly in health
sciences. With public sector capacity stagnant and limited
prospects for significant budgetary increases, private institutions
like UAX are well-positioned to capture unmet demand, especially in
high-growth fields such as veterinary medicine, dentistry,
pharmacy, and biomedicine. UAX's robust market share in these
disciplines, combined with its strategic partnerships,
state-of-the-art facilities, and strong employability outcomes,
supports continued growth in total enrollments and reinforces its
competitive advantage in a structurally expanding market.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS
Governance risks as per Moody's General Principles for Assessing
Environmental, Social and Governance Risks methodology were
considered key rating drivers of this first-time rating assignment.
Governance risks reflect the company's financial policy,
characterized by a high tolerance for leverage and an ambitious
organic growth strategy that leads to limited free cash flow
generation. It also reflects its controlled ownership, as the
company is owned by private equity sponsor Cinven (60%), investment
firm Mubadala (25%) and UAX's founder Jesús Nuñez Velazquez
(15%).
LIQUIDITY
UAX's liquidity is good. At transaction closing, the group is
expected to have a minimal cash balance but full availability under
its EUR120 million senior secured RCF due in 2032. The RCF is
subject to a senior secured leverage ratio springing covenant to be
tested when drawings exceed 40% of total commitments. Moody's
forecasts ample headroom under this covenant over the next 12-18
months.
Moody's expects significant capital spending of approximately EUR53
million in fiscal 2026, primarily driven by expansionary capex
(EUR36 million) for new centers and upgrades to existing
facilities, along with rental expenses (EUR13 million) and
maintenance capex (EUR5 million).
Despite this, Moody's forecasts positive free cash flow of around
EUR12 million for that year. This should allow the group to meet
its cash needs comfortably over the next two years. That said, the
company's cash flow is seasonal in nature and heavily influenced by
the traditional academic year, with large cash outflows during the
summer months.
The company will have no debt maturities until 2032 and 2033, when
the RCF and the TL mature, respectively.
STRUCTURAL CONSIDERATIONS
The B2 ratings on the senior secured TL and senior secured RCF, are
in line with the long-term CFR, reflecting the fact that these
facilities constitute the majority of the group liabilities and
rank pari passu amongst them. The facilities are guaranteed by
operating companies representing at least 80% of consolidated
EBITDA. The security package is limited to a pledge of shares and
bank accounts. The PDR of B2-PD, in line with the long-term CFR,
reflects the use of a 50% family recovery rate typical for bank
debt structures with loose covenants.
COVENANTS
Moody's have reviewed the marketing draft terms for the new credit
facilities. Notable terms include the following:
Guarantor coverage will be at least 80% of consolidated EBITDA
(determined in accordance with the agreement) and include
wholly-owned companies representing more than 5% of consolidated
EBITDA and incorporated in England and Spain. Security will be
granted over key shares and material bank accounts.
Pari passu additional facilities are permitted up to 100% of
consolidated EBITDA as well as unlimited amounts up to a senior
secured net leverage ratio (SSNLR) equal to opening leverage or if
the SSNLR does not deteriorate. Unlimited second lien facilities,
unsecured facilities and facilities secured on non-collateral
assets are permitted subject to (i) a 2.0x fixed charge coverage
ratio (FCCR); (ii) the FCCR not being made worse; (iii) the
applicable net leverage ratio (NLR) being 2.0x or less than opening
leverage; or (iv) the applicable net leverage not deteriorating.
Unlimited restricted payments are permitted subject to a secured
net leverage ratio (SNLR) 0.5x or less than opening leverage, (with
step-downs if funded from permitted funding (which amounts includes
all permitted debt)). Permitted investments are allowed if (i) the
SNLR is at opening leverage or lower; (ii) the SNLR does not
deteriorate; (iii) the FCCR is 2.0x or greater; (iv) the FCCR does
not deteriorate; or (v) if funded from permitted funding. Asset
sale proceeds are only required to be applied in full where the
SNLR exceeds opening ratio.
Adjustments to consolidated EBITDA include the full run rate of
cost savings and synergies, uncapped and with no realization
runway.
The proposed terms, and the final terms may be materially
different.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook reflects Moody's expectations that UAX will
continue to achieve strong organic growth over the next 12 to 18
months, resulting in rapid deleveraging below 6.0x by fiscal 2027,
while maintaining stable profit margins and positive free cash flow
generation.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward pressure on the ratings could arise if the company's
Moody's-adjusted gross leverage decreases sustainably below 5.0x
and positive free cash flow is maintained. An increase in the scale
of operations and greater geographic diversification could also
support upward pressure on the rating.
Downward pressure on the ratings could arise if there is a
deterioration in operating performance or if Moody's-adjusted gross
leverage increases and remains sustainably above 6.0x. The ratings
could also be downgraded if (1) liquidity weakens, (2) free cash
flow turns negative for an extended period, or (3) changes in
accreditation or the regulatory environment materially impair the
company's business prospects.
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.
CORPORATE PROFILE
Sapiencia BidCo S.L.U. (Sapiencia), is the vehicle that will
acquire Guadarrama Proyectos Educativos, S.L. (Guadarrama), the
holding company that owns Universidad Alfonso X El Sabio (UAX or
the company). UAX is a private university focusing on healthcare
degrees in the premium higher education segment, offering
undergraduate and postgraduate degrees and vocational education
programs, both onsite and online. Founded in 1993, UAX operates
three campuses in Madrid, with more than 32,000 students in the
fiscal year 2025.
The company generated revenue and Moody's-adjusted EBITDA of EUR237
million and EUR102 million, respectively, in the fiscal year ended
in August 2025 (fiscal 2025).
===========
S W E D E N
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HEIMSTADEN BOSTAD: Fitch Rates New EUR500MM Hybrid Bond 'BB(EXP)'
-----------------------------------------------------------------
Fitch Ratings has assigned Heimstaden Bostad AB's proposed
benchmark size EUR500 million undated hybrid bond an expected
rating of 'BB(EXP)'. The rating is the same as Heimstaden Bostad's
existing subordinated debt rating of 'BB'. The proposed hybrids
would qualify for 50% equity credit.
The proceeds from the hybrid issue will be used to refinance
Heimstaden Bostad's existing EUR500 million hybrid bond callable in
January 2026. Of this existing hybrid's nominal amount, EUR336
million remains outstanding. A further EUR164 million is held by
Heimstaden Bostad on its own books and will be cancelled as part of
this transaction. The residual cash will be used for general
corporate purposes.
The final rating is contingent on the receipt of final documents
conforming materially to the preliminary documentation reviewed.
Key Rating Drivers
Fixed-to-Reset Coupon: The proposed hybrid will have a fixed coupon
for 5.25 years until April 2031 before resetting to a five-year
euro swap rate plus initial margin and any step-up, if applicable.
If the hybrid is not called ahead of its first step-up date, the
margin will increase by 25bp and by a cumulative total 100bp at its
second step-up date.
Hybrid Notched Off IDR: The proposed perpetual hybrid securities
are rated two notches below Heimstaden Bostad AB's Long-Term Issuer
Default Rating (IDR) of 'BBB-'/Stable. This reflects the hybrids'
deeply subordinated status, ranking behind senior creditors and
senior only to equity (ordinary and preference shares), with coupon
payments deferrable at the discretion of the issuer and no formal
maturity date. It also reflects the hybrid's greater loss severity
and higher risk of non-performance than senior obligations.
Equity Treatment: Under Fitch's hybrid criteria, the proposed
security qualifies for 50% equity credit due to deep subordination,
a remaining effective maturity of at least five years, full
discretion to defer coupons for at least five years and limited
events of default. Equity credit is limited to 50%, given the
cumulative interest coupon, a feature that is more debt-like in
nature.
Effective Maturity Date: Fitch said, "Although the hybrid is
undated, we deem its effective maturity to be 20 years after the
first reset date in accordance with our Corporate Hybrids Treatment
and Notching Criteria. From this date, the issuer will no longer be
subject to replacement language, which discloses the intent to
redeem the instrument with the proceeds from similar instrument or
equity. The instrument's equity credit would change to 0% five
years before the effective maturity date (ie 15 years after the
respective reset date). The coupon step-up remains within Fitch's
aggregate threshold rate of 100bp."
Peer Analysis
Heimstaden Bostad's portfolio of EUR29.7 billion and 158,317
residential-for-rent units at end-3Q25 was materially larger than
Grainger plc's (BBB-/Stable; EUR4.2 billion; 10,924 units); Peach
Property Group AG (B/Stable; EUR1.9 billion), which is mainly
focused in Germany's North Rhine-Westphalia region; and D.V.I.
Deutsche Vermoegens- und Immobilienverwaltungs GmbH (DVI;
BBB-/Stable; Berlin-focused EUR2.3 billion, mainly residential).
The German-weighted portfolio of Vonovia SE (BBB+/Stable) is larger
at EUR82 billion with 539,753 units.
Heimstaden Bostad's 2024 like-for-like (lfl) rental growth was 5.3%
compared with Vonovia's 3.7%, with both companies' Swedish
portfolios averaging about 5.5% for 3Q25. Their German portfolios
are markedly different with Vonovia's more widespread domestic
portfolio capturing lower-quality portfolios, compared with
Heimstaden Bostad's quality-end Berlin and Hamburg-specific
portfolios. DVI's equivalent 2024 lfl rent rise was about 4% with
little tenant improvement capex. Grainger's equivalent year to
end-September 2025 was a subdued 3.4%. All companies have high
occupancy.
The geographical diversification of Heimstaden Bostad's European
portfolio is wider than peers', balancing city-specific conditions
such as Berlin's rent regulation with exposure to different
countries' economies and rental regulations.
Heimstaden Bostad's net debt/EBITDA of 19.6x at end-2024 is
comparable to that of investment-grade peers, such as Vonovia
(around 17x), DVI (residential-based measure; end-2024: 17.7x), and
the development-burdened, less-regulated, portfolio of Grainger
(end-September 2025: 16x). For some companies, tightening interest
coverage is constraining their debt capacity.
Fitch's Key Rating-Case Assumptions
- Net rents averaging 2.5% year-on-year growth during 2025-2028.
Annual net rental growth averages 5.4%, excluding the adverse
effect of ongoing privatisation disposals but including the
beneficial effect of tenant improvement capex on units
- Eurozone variable rates use the 2% eurozone policy rate from
Fitch's Global Economic Outlook (September 2025). New fixed-rate
bonds assumed at 4%. Hybrids' scheduled coupon resets to 6%-7%
- Capex at SEK5 billion a year during 2026-2028, yielding gross
rent of 7.5% (this is a blend of tenant improvement capex at
double-digit yields and lower yield for maintenance expenditure)
- Disposals, including ongoing privatisation disposals, average
SEK10.5 billion a year during 2025-2028
- Cash dividends are paid in 2027 including the accrued dividend
for the Class A shares to Heimstaden AB
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Net debt/EBITDA above 22x
- EBITDA net interest cover remaining below 1.4x
- Changes to the governance structure that loosen the ring-fencing
around Heimstaden Bostad
- A 12-month liquidity score approaching 1.0x
- For the senior unsecured debt rating: failure to improve the
unencumbered investment property assets/unsecured debt cover
towards 1.5x by end-2025 (end-2025E: 1.7x; end-2026F: 1.9x)
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Successful progress with the privatisation disposal programme
- Liquidity score above 1.25x for the first 12 months and above
1.0x for the subsequent nine to 12 months
- Net debt/EBITDA below 21x
- EBITDA net interest cover above 1.6x
Liquidity and Debt Structure
Heimstaden Bostad had cash of SEK3 billion at end-3Q25, including
the benefits of proceeds from its September 2025's EUR500 million
3.75% coupon bond, privatisation disposal proceeds, lighter capex
and no dividends. At end-3Q35, revolving credit facilities (RCFs)
were SEK25.7 billion (of which SEK19 billion remained available)
with their maturity dates starting from mid-2027. The debt maturity
profile totals SEK10.4 billion in 2026. The company's debt maturity
profile until 2031 is about SEK22 billion-25 billion a year and
2027's liquidity profile is 1x, without extensions of existing
RCFs.
Fitch calculates the 2024 average cost of debt at 3.3% (including
hybrids' interest expense at 100%). The average debt maturity was
7.7 years at end-3Q25 (end-2023: eight years), excluding the
permanent hybrids. The average interest rate maturity was a short
3.25 years at end-3Q25: (end-3Q24: 3.24 years) and 87% of debt had
fixed or hedged interest rates.
Issuer Profile
Heimstaden Bostad is a pan-European residential-for-rent real
estate company. It is owned by Heimstaden AB, together with other
long-term Nordic institutional investors.
===========
T U R K E Y
===========
ALBARAKA TURK: Fitch Hikes LongTerm IDRs to B+
----------------------------------------------
Fitch Ratings has upgraded Albaraka Turk Katilim Bankasi Anonim
Sirketi's Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) to 'B+' from 'B', and its Viability Rating (VR) to
'b+' from 'b'. Fitch has also upgraded the bank's National
Long-Term Rating to 'A(tur)' from 'BBB+(tur)'. The Rating Outlooks
are Stable.
The upgrade reflects Fitch's improved assessment of the Turkish
operating environment, as shown by the recent revision of the
operating environment score for Turkish banks to 'bb-'/stable from
'b+'/positive. It also considers the bank's reasonable underlying
profitability and fairly stable asset quality metrics amid improved
operating conditions.
Fitch has also upgraded the long-term rating of Albaraka Turk's
USD1 billion trust certificate programme, housed under
special-purpose vehicle Albaraka MTN Ltd, to 'B+' from 'B' and
affirmed the programme's short-term rating at 'B'. Fitch has
simultaneously withdrawn the programme ratings for commercial
reasons.
Key Rating Drivers
VR Drives Ratings: Albaraka Turk's IDRs and National Long-Term
Rating are driven by its standalone creditworthiness, as reflected
in its VR. The VR considers the concentration of its operations in
the improved, but still challenging, Turkish market, where it has a
niche franchise in the participation-banking subsector. It further
considers the bank's reasonable average profitability and asset
quality ratios, adequate funding and liquidity, but also exposure
to cyclical sectors and only adequate capitalisation. The bank's
'B' Short-Term IDRs are the only possible option mapping to the
Long-Term IDRs in the 'B' rating category.
Improved but Challenging Operating Environment: Fitch's view of the
improved Turkish operating environment reflects the normalisation
and a stronger record of the monetary policy. This has reduced
refinancing risk, improved external market access, policy
credibility and consistency, and fostered exchange-rate stability,
despite financial market volatility. However, banks are exposed to
still high - but declining - inflation, slowing economic growth,
domestic political volatility and macro-prudential regulations,
despite simplification efforts.
Niche Franchise; Small Market Share: Albaraka Turk's small
franchise (end-9M25: 1% of sector assets) results in limited
pricing power. This is despite it having a 12% share in
participation banking, a niche segment accounting for 9% of
banking-sector assets.
Higher Risk Appetite: Credit risks are heightened by the bank's
high foreign-currency financing (end-3Q25: 46% of gross financing),
as not all borrowers are fully hedged against lira depreciation,
exposure to the construction and real estate sector (11.5% of
financing) and single-name concentration risk. Profit-and-loss
sharing projects accounted for 3.4% of the financing book at
end-3Q25.
Below Sector Average NPF: The bank's non-performing financing (NPF)
increased slightly to 1.6% at end-3Q25 (end-2024: 1.4%), slower
than the sector average, given the bank's lower exposure to
unsecured retail and credit cards. Its Stage 2 financing ratios
increased to 6.1% from 5.8% in the same period. Exposure to SMEs
and to troubled sectors, and foreign-currency financings, lead to
asset quality risks. Fitch expect its asset quality to deteriorate
moderately in 2026, and the NPF ratio to be about 2.5% at
end-2026.
Volatile Profitability: Albaraka Turk's operating profit increased
to 3.8% of average total assets at end-3Q25 (2024: 2%), supported
by one-off free provision reversals (1.9% of average of total
assets), ongoing NPF recoveries and good fee income generation,
which together offset a decline in net financing margins (3Q25:
1.5%; end-2024: 3.7%) and an increase in operating costs. Fitch
expects margins to recover in 2026 as the monetary policy eases but
also forecast financing impairment charges to increase and the
operating profit/average assets ratio to reduce to about 2%.
Only Adequate Capitalisation: Albaraka Turk's common equity Tier 1
(CET1) ratio declined to 10.8% (net of forbearance 9%) at end-3Q25
(end-2024: 13%), due to a tightening of forbearance measures and
high growth. As an Islamic bank, Albaraka Turk benefits from a 50%
reduction in risk-weighting on assets financed by profit-share
accounts. Fitch estimates this to have resulted in an uplift of
about 150bp to its end-3Q25 CET1 ratio.
Leverage is high, as reflected in an equity/assets ratio of 5.7% at
end-3Q25 (sector average: 8.7%). NPFs are fully covered by total
reserves, while pre-impairment operating profit (end-3Q25: equal to
a moderate 2% of gross financing) provides additional buffers.
Fitch expects the CET1 ratio to be about 11% by end-2026, after
accounting for the removal of forbearance.
Sufficient Foreign-Currency Liquidity: Albaraka Turk is mostly
deposit-funded (end-3Q25: 68% of non-equity funding; 50% in foreign
currency). Wholesale funding is high, at 32% of non-equity funding,
and 67% of this is in foreign currency, exposing the bank to
refinancing risk, particularly if market volatility hits investor
sentiment. Foreign-currency liquidity, mainly comprising
placements, cash and government securities and placements in
foreign banks, was sufficient to cover all maturing external
foreign-currency debt within 12 months at end-3Q25.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Albaraka Turk's Long-Term IDRs and VR are sensitive to a weakening
in the operating environment and a sovereign downgrade. An erosion
of the bank's capitalisation buffers, likely driven by
worse-than-expected asset-quality deterioration, a sharp increase
in risk appetite, or pressure on profitability and foreign-currency
liquidity, could lead to a downgrade of the VR. An equity/assets
ratio below 5%, without prospects of recovery or mitigating
factors, would also lead to a VR downgrade.
The bank's Short-Term IDRs are sensitive to a multi-notch downgrade
of its Long-Term IDRs.
The bank's National Long-Term Rating is sensitive to a negative
change in its creditworthiness in local currency relative to that
of other rated Turkish issuers.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of Albaraka 's IDRs and VR would require an upgrade of
Turkiye's sovereign rating and upward revision of the operating
environment. This should be coupled with an improvement in its
business profile, extended record of stable asset quality and
sustainable performance so that the equity/assets ratio exceeds 8%
on a sustained basis.
The Short-Term IDRs are sensitive to upgrades of the Long-Term
IDRs.
The National Long-Term Rating is sensitive to a positive change in
the bank's creditworthiness in local currency relative to other
rated Turkish issuers.
The bank's Government Support Rating of 'no support' reflects
Fitch's view that support from the Turkish authorities cannot be
relied on, given the bank's small size and limited systemic
importance. Shareholder support, while possible, cannot be relied
on.
An upgrade of the GSR is unlikely given Albarka Turk's limited
systemic importance and franchise.
VR ADJUSTMENTS
The operating environment score of 'bb-' for Turkish banks is lower
than the category implied score of 'bbb', due to the following
adjustment reason: sovereign rating (negative).
The business profile score of 'b+' is below the category implied
score of 'bb' due to the following adjustment reason: market
position (negative).
The asset quality score of 'b+' is below the category implied score
of 'bb' due to the following adjustment reason: concentrations
(negative).
The earnings and profitability score of 'b+' is below the category
implied score of 'bb' due to the following adjustment reason:
earnings stability (negative).
The capitalisation and leverage score of 'b' is below the category
implied score of 'bb' due to the following adjustment reason:
leverage and risk-weight calculation (negative).
The funding and liquidity score of 'b+' is below the category
implied score of 'bb' due to the following adjustment reason:
deposit structure (negative).
RATING ACTIONS
Rating Prior
------ -----
Albaraka Turk Katilim
Bankasi Anonim Sirketi
LT IDR B+ Upgrade B
ST IDR B Affirmed B
LC LT IDR B+ Upgrade B
LC ST IDR B Affirmed B
Natl LT A(tur) Upgrade BBB+(tur)
Viability b+ Upgrade b
Gov't. Support ns Affirmed ns
Albaraka MTN Ltd
senior unsecured LT B+ Upgrade RR4 B
senior unsecured LT WD Withdrawn
=============
U K R A I N E
=============
HOLDCO MHP SE: S&P Places 'CCC' LT ICR on CreditWatch Positive
--------------------------------------------------------------
S&P Global Ratings placed on CreditWatch positive its 'CCC'
long-term issuer credit rating on European poultry producer MHP
(Holdco MHP SE) and its 'CCC' issue ratings on the 2026 and 2029
senior notes. At the same time, S&P assigned its proposed 'CCC+'
issue rating to the new $450 million senior unsecured notes. The
final issue rating on the new senior notes is contingent on
successful placement of the new notes.
The CreditWatch positive indicates that S&P would raise to 'CCC+'
its issuer credit rating on MHP once the new senior notes are
issued and it understands the April 2026 senior notes are likely to
be repaid in full and in a timely manner.
On Jan. 15, 2026, Holdco MHP SE launched the refinancing of its
$550 million senior notes due April 2026. The tender offer on the
outstanding notes will be funded by the issuance of $450 million of
new long-term senior unsecured notes and $100 million of cash
balances. S&P believes this transaction is credit positive because
it will address significant short-term refinancing risk.
S&P said, "MHP continues to perform well operationally with cash
flow and credit metrics remaining in line with our base case for
2025. For 2026 we see adjusted EBITDA of $600 million, notably
thanks to the full earnings contribution from acquired Spanish
poultry producer UVESA. We see MHP able to generate slight positive
free operating cash flow (FOCF) and maintain stable credit metrics
such that adjusted debt to EBITDA is around 3.5x and EBITDA
interest coverage is also around 3.5x.
"That said, we continue to believe that without an unforeseen
positive development in Ukraine's security, economic, and
logistical environment, long-term refinancing risks remain high for
the group.
"We see the transaction, if successful, enabling MHP to address
major short-term refinancing risk. The proposed issuance of $450
million of new senior notes, in addition to $100 million of cash
held outside Ukraine, will fund a tender offer to existing
bondholders of $550 million of outstanding senior notes due April
2026. Pro forma the transaction, the debt maturity profile would
improve with no large debt maturities due until 2029 when the two
series of senior notes will be due. On Sept. 30, 2025, MHP had $371
million of bank debt that was due within one year, but most of its
bank lines are rolled over as they serve to fund business needs
like working capital and capital expenditure projects. We indeed
believe MHP retains the supports of its international and local
lenders as it continues to service its financial obligations in
full and on time and remains in compliance with all its financial
covenants. Finally, we note the proposed transaction aligns with
recent regulatory changes in Ukraine. Through a new law, the
National Bank of Ukraine allows proceeds from the proposed new
senior notes to be issued outside Ukraine to flow through Ukrainian
entities and be used to repay the April 2026 outstanding senior
notes held outside Ukraine. We understand the central bank
continues to require Ukrainian exporters to repatriate cash held
outside Ukraine within 180 days of a commercial transaction for
meat exports and within 120 days for grains exports.
"We continue to see MHP able to maintain steady operating and
financial performance for 2026. For the 12 months to Sept. 30,
2025, MHP generated adjusted EBITDA of $547 million with $46
million of positive FOCF, while EBITDA interest coverage amounted
to 3.1x and adjusted debt leverage to 4.4x. The latter peaked
because of the debt-funded acquisition of UVESA, which closed in
July 2025. For 2026 we forecast MHP will generate adjusted EBITDA
of around $600 million (including both MHP stand alone and full
contribution of UVESA) with positive FOCF of around $45 million.
Credit metrics are expected to improve versus Sept. 30, 2025, with
EBITDA interest coverage of around 3.5x and adjusted debt leverage
of around 3.5x also. Overall, we see increasing EBITDA from the
poultry operations in Ukraine and Europe, offset by lower earnings
from the agriculture business.
"In our view the group will likely face significant long-term
refinancing risks due to the difficult operating environment in
Ukraine. The planned refinancing has addressed short-term
maturities, but MHP will nevertheless face a spike in debt
maturities in 2029, when 40% of its total gross debt, including two
senior notes, will be due. We believe the highly volatile operating
environment that owes to the ongoing Russia-Ukraine war will
continue to limit business visibility in Ukraine (where MHP
generates over 70% of its EBITDA) and with that, the conditions for
a sustained increase in FOCF generation, and ability to better
self-fund its operations.
"We expect to resolve the CreditWatch once MHP completes the
refinancing transaction. We could lower our rating by multiple
notches if MHP is unable to refinance in a timely manner and in
full its $550 million senior notes due in April 2026. We would
raise the issuer credit rating on MHP to 'CCC+' once the group
successfully places the long-term senior secured notes."
===========================
U N I T E D K I N G D O M
===========================
HARLOW TOWN FC: MHA Advisory Named as Administrators
----------------------------------------------------
Harlow Town Football Club Limited was placed into administration
proceedings in the High Court of Justice, Business and Property
Courts of England and Wales, Court No. CR-2025-008700, and Liam
Alexander Short and Andrew Duncan of MHA Advisory Ltd were
appointed as joint administrators on Jan. 9, 2026.
Harlow Town Football Club operates as a private limited company
(Harlow Town Football Club Limited), an unusual structure for a
non-league club, owned by an individual rather than being a
community-run entity, with its business nature focused on running a
professional football team and associated activities.
Its registered office is at MHA, 6th Floor, 2 London Wall Place,
London, EC2Y 5AU.
Its principal trading address is at Barrows Farm Stadium, off
Elizabeth Way, Harlow, Essex, CM19 5BE.
The joint administrators can be reached at:
Liam Alexander Short
Andrew Duncan
MHA Advisory Ltd
6th Floor, 2 London Wall Place
London, EC2Y 5AU
For further details, contact:
Email: HarlowTownFootballClub@mha.co.uk
IMPROVEMENT HOUSE: South West & Wales Named as Administrators
-------------------------------------------------------------
Improvement House Ltd was placed into administration proceedings in
the High Court of Justice, Business and Property Courts in Bristol
Companies Court (Ch), Court No. CR-2026-BRS-000003, and Sam Talby
and Rob Coad of South West & Wales Business Recovery were appointed
as joint administrators on Jan. 9, 2026.
Improvement House Ltd specialized in bifolding door manufacturing,
trading as Smarts Bifold Doors.
Its registered office is 20–22 Wenlock Road, London, N1 7GU.
Its principal trading address is 1 & 2 Springfield Business Park,
Adams Way, Alcester, Warwickshire, B49 6PU.
The joint administrators can be reached at:
Sam Talby
Rob Coad
South West & Wales Business Recovery
Orchard Street Business Centre
13–14 Orchard Street
Bristol, BS1 5EH
For further details, contact:
Charlie Cooper
Email: charlie.cooper@swbr.co.uk
Matt McNaughton
Email: matt.mcnaughton@swbr.co.uk
NOBLE EVENTS: KRE Corporate Named as Administrators
---------------------------------------------------
Noble Events Limited was placed into administration proceedings in
the High Court of Justice, Court No. CR-2026-000066, and Paul
Ellison and Christopher Errington of KRE Corporate Recovery Limited
were appointed as joint administrators on Jan. 7, 2026.
Noble Events Limited specialized in event planning.
Its registered office is Vespace 10 Lancaster Place, Copse Farm,
South Marston Industrial Park, Swindon, SN3 4UQ.
Its principal trading address is Jason Works, Clarence Street,
Loughborough, Leicestershire, LE11 1DX.
The joint administrators can be reached at:
Paul Ellison
Christopher Errington
KRE Corporate Recovery Limited
Unit 8, The Aquarium Building
King Street
Reading, Berkshire, RG1 2AN
For further details, contact:
Chloe Brown
Email: chloe.brown@krecr.co.uk
Tel: 01189 47 90 90
PLANOVA LEEDS: RSM UK Restructuring Named as Administrators
-----------------------------------------------------------
Planova Leeds Limited, trading as Bartuf Ltd, was placed into
administration proceedings in the High Court of Justice of England
& Wales, Court No. CR-2026-176, and Gordon Thomson and Gareth
Harris of RSM UK Restructuring Advisory LLP were appointed as joint
administrators on Jan. 12, 2026.
Planova Leeds Limited specialized in the manufacture of builders
ware of plastic.
Its registered office and principal trading address is at is Unit 2
Carr Crofts Drive, Leeds, LS12 3AL.
The joint administrators can be reached at:
Gordon Thomson
Gareth Harris
RSM UK Restructuring Advisory LLP
25 Farringdon Street
London, EC4A 4AB
Gareth Harris
RSM UK Restructuring Advisory LLP
29 Wellington Street
Leeds LS1 4DL
Correspondence address & contact details of case manager:
Luke Jones
RSM UK Restructuring Advisory LLP
25 Farringdon Street
London, EC4A 4AB
Tel: 020 3201 8000
For further details, contact:
Gordon Thomson
Tel: 020 3201 8000
Gareth Harris
Tel: 0113 285 5000
TOGETHER ASSET 2024-2ND1: DBRS Confirms BB(low) Rating on F Notes
-----------------------------------------------------------------
DBRS Ratings Limited confirmed its credit ratings on the notes
issued by Together Asset Backed Securitization 2024-2ND1 PLC (the
Issuer) as follows:
-- Loan note at AAA (sf)
-- Class A at AAA (sf)
-- Class B at AA (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class E at BB (high) (sf)
-- Class F at BB (low) (sf)
The credit ratings on the Loan note, Class A notes (together, the
Class A debt), and the Class B notes address the timely payment of
interest and ultimate payment of principal on or before the legal
final maturity date. The credit ratings on the Class C, Class D,
Class E and Class F notes address the ultimate payment of interest
and the ultimate payment of principal on or before the legal final
maturity date, and the timely payment of interest when the
senior-most class outstanding.
CREDIT RATING RATIONALE
The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:
-- Portfolio performance, in terms of delinquencies, defaults and
losses, as of the December 2025 payment date.
-- Portfolio default rate (PD), loss given default (LGD) and
expected loss assumptions on the remaining receivables.
-- Current available credit enhancement to the notes to cover the
expected losses at their respective credit rating levels.
The transaction is a securitization of second-lien mortgage loans,
both owner-occupied and buy-to-let, backed by residential
properties in the United Kingdom). The loans are originated and
serviced by Together Personal Finance Limited and Together
Commercial Finance Limited, both belonging to the Together Group of
companies. BCMGlobal Mortgage Services Limited acts as the standby
servicer.
The first optional redemption date is on the January 2028 payment
date and coincides with a step-up of the coupons on the notes.
PORTFOLIO PERFORMANCE
As of November 30, 2025, loans two to three months in arrears
represented 1.0% of the outstanding portfolio balance, down from
1.1% in November 2024. Loans more than three months in arrears
represented 5.0%, up from 2.7% in November 2024. The cumulative
loss ratio was 0.0%.
PORTFOLIO ASSUMPTIONS AND KEY DRIVERS
Morningstar DBRS conducted a loan-by-loan analysis of the remaining
pool of receivables and updated its base case PD and LGD
assumptions at the B (sf) credit rating level to 14.3% and 25.3%
respectively.
CREDIT ENHANCEMENT
Credit enhancement consists of the subordination of the junior
notes. Credit enhancement levels as of the December 2025 payment
date compared to the CE levels at the Morningstar DBRS initial
ratings were as follows:
-- Class A Debt: 44.0%, from 25.0%
-- Class B notes: 27.3% from 15.5%
-- Class C notes: 19.3% from 11.0%
-- Class D notes: 10.6% from 6.0%
-- Class E notes: 6.2% from 3.5%
-- Class F notes: 4.4% from 2.5%
The transaction benefits from an amortizing liquidity reserve,
which covers senior fees, swap payments, and interest shortfalls on
the Class A Debt and Class B notes. As of the December 2025 payment
date, the liquidity reserve was at its target level of
approximately GBP 2.1 million.
U.S. Bank Europe DAC, U.K. Branch (U.S. Bank Europe) acts as the
account bank for the transaction. Based on the Morningstar DBRS
private credit rating on U.S. Bank Europe, the downgrade provisions
outlined in the transaction documents, and other mitigating factors
inherent in the transaction structure, Morningstar DBRS considers
the risk arising from the exposure to the account bank to be
consistent with the credit ratings assigned to the Class A debt, as
described in Morningstar DBRS' "Legal and Derivative Criteria for
European and Asia-Pacific Structured Finance Transactions"
methodology.
Natixis S.A. (Natixis) acts as the swap counterparty for the
transaction. Morningstar DBRS' private credit rating on Natixis is
above the First Rating Threshold as described in Morningstar DBRS'
"Legal and Derivative Criteria for European and Asia-Pacific
Structured Finance Transactions" methodology.
Notes: All figures are in British pound sterling unless otherwise
noted.
ZHONG LUN: Quantuma Advisory Appointed as Administrators
--------------------------------------------------------
Zhong Lun Law Firm Limited was placed into administration
proceedings in the High Court of Justice, Business and Property
Courts in Manchester, Court No. CR‑2025‑1771, and Andrew
Hosking and Sean Bucknall of Quantuma Advisory Limited were
appointed as joint administrators on Dec. 30, 2025.
Zhong Lun Law Firm Limited engaged in business support service
activities.
Its registered office is 10‑11 Austin Friars, London,
EC2N 2HG.
The joint administrators can be reached at:
Andrew Hosking
Sean Bucknall
Quantuma Advisory Limited
3rd Floor, 37 Frederick Place
Brighton, BN1 4EA
For further details, contact:
Joel Daly
Tel: 01273 322413
Email: joel.daly@quantuma.com
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.
Copyright 2026. All rights reserved. ISSN 1529-2754.
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