260210.mbx

260210.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, February 10, 2026, Vol. 27, No. 29 Headlines G E R M A N Y PCF GMBH: Moody's Lowers CFR to Caa3 & Alters Outlook to Stable I R E L A N D BARINGS EURO 2024-1: Fitch Assigns 'B-sf' Rating on Cl. F-R Notes BLACKROCK EUROPEAN XI: Moody's Cuts EUR12MM F Notes Rating to Caa1 CAIRN CLO VII: Fitch Lowers Rating on Class E Notes to 'BB-sf' RRE 18 LOAN: S&P Assigns BB-(sf) Rating on Class D-R Notes K A Z A K H S T A N AB KAZAKHSTAN-ZIRAAT: Fitch Alters Outlook on 'B+' IDR to Positive L U X E M B O U R G EOS FINCO: S&P Downgrades ICR to 'SD' on Debt Exchange Completion S P A I N EDREAMS ODIGEO: Fitch Corrects Dec. 19 Ratings Release T U R K E Y DFS FUNDING: Fitch Affirms BB+ Ratings on Notes Frm Several Series U N I T E D K I N G D O M AB SITE: Leonard Curtis Named as Administrators ALLEN REID: Marshall Peters Named as Administrators B&M EUROPEAN: Moody's Lowers CFR & Senior Secured Notes to Ba2 BLINK PRINT: Forvis Mazars Named as Administrators HILLIN HOLDINGS: Leonard Curtis Named as Administrators JOLLIFFE-HEPBURN LIMITED: Leonard Curtis Named as Administrators LNC PROPERTY: FRP Advisory Named as Administrators MK ASSETS: Griffins Named as Administrators N D B ENGINEERING: Begbies Traynor Named as Administrators ONESPACE GROUP: Leonard Curtis Named as Administrators SENAPT LIMITED: FTS Recovery Named as Administrators - - - - - ============= G E R M A N Y ============= PCF GMBH: Moody's Lowers CFR to Caa3 & Alters Outlook to Stable --------------------------------------------------------------- Moody's Ratings has downgraded the credit ratings of PCF GmbH (Pfleiderer), including the corporate family rating to Caa3 from Caa1, the probability of default rating to Caa3-PD from Caa1-PD, and the senior secured notes to Ca from Caa1. The outlook has changed to stable from negative. The rating actions follow Pfleiderer's announcement that it established an unrestricted subsidiary, Maple Group, to which it transferred a 90% stake in Silekol. Maple Group raised EUR135 million of new financing, consisting of a EUR110 million non recourse super senior term loan maturing in December 2028 and a EUR25 million subordinated shareholder loan. As consideration, Pfleiderer's restricted group received an undisclosed mix of cash and unsecured subordinated intercompany promissory notes. Moody's working assumption is that Silekol will continue to be fully consolidated in Pfleiderer's financial statements despite sitting outside the restricted group. Moody's views this transaction as credit negative because it migrates value outside the restricted perimeter and weakens the collateral supporting the senior secured notes, as a profitable operating asset (Silekol) is replaced with cash and subordinated claims. The transaction also widens the gap between consolidated reported metrics and the economic value available to existing creditors. The new super senior facility at Maple Group adds structural subordination and introduces an adverse maturity sequence, with Silekol's secured debt maturing ahead of both the super senior revolving credit facility (RCF) and the senior secured notes. Limited disclosures on the mix of cash and promissory notes, intragroup mechanics, and new debt documentation increase information risk amid already strained liquidity and deteriorating operating performance. RATINGS RATIONALE The CFR downgrade reflects Moody's views that Pfleiderer's capital structure remains unsustainable given its very high leverage, persistent cash burn, and structurally weak demand in its core discretionary end-markets. Moody's expects operating conditions to remain subdued, particularly in Germany (accounts for 43% of sales in the twelve months ending September 31, 2025), and to continue to constrain volumes and pricing in wood-based panels for kitchens, furniture, and construction. The combination of earnings erosion, a heavy debt burden, and still-elevated capital expenditure continue to pressure liquidity. Pfleiderer stood at Moody's-adjusted debt/EBITDA of 16.7x as of LTM September 2025 and used around 61% and 104% of its cash EBITDA on cash interest charges and capex, respectively. These charges materially reduced the company's available liquidity (cash and undrawn RCF) to EUR34 million in September 2025, down from EUR113 million in December 2024, EUR122 million in December 2023, and EUR183 million in December 2022. Moody's recognizes the expected uplift from Project Nord as commissioning ramps up toward Q2 2026, but Moody's do not expect the improvement in Silekol's performance to compensate for the structurally weak outlook in Engineered Wood Products. Moody's forecasts Silekol to generate EUR329 million revenue (11.3% company-adjusted EBITDA margin) in 2026, increasing to EUR389 million revenue (11.6% margin) in 2027. However, Engineered Wood Products remains larger and materially less profitable, with expected revenue of EUR618 million (6.8% margin) in 2026 and EUR631 million (7.9% margin) in 2027. The Maple Group–Silekol transaction provides near term liquidity relief in 2026 at the consolidated group level. However, the extent to which this liquidity can be upstreamed to the restricted group is uncertain, as the financing sits outside the restricted perimeter and intragroup cash flow mechanics have not been disclosed. In any event, the transaction does not address the restricted group's elevated leverage. Moody's expects Moody's adjusted debt/EBITDA to remain very high at around 16.7x in 2026 (28.7x excluding Silekol) and 13.4x in 2027 (23.0x excluding Silekol). Moody's forecasts cash EBITDA of EUR69 million in 2026 and EUR88 million in 2027 to remain insufficient to support the capital structure, leading to continued cash burn and decline of company's available liquidity to only EUR10 million by December 2027. The downgrade of the senior secured notes reflect Moody's views that restricted group lenders face a high likelihood of losses. Moody's sees a meaningful risk of a distressed exchange-type restructuring within the next 12–18 months, which would lead to a material principal impairment for existing creditors, consistent with the Ca rating and very low expected recovery. The Maple Group–Silekol transaction materially weakens the noteholders' position within the restricted group, and the limited visibility on how much liquidity is readily accessible to the restricted group increases uncertainty around lenders' effective recovery prospects. Moody's now assume that the restricted group holds a financially weaker and materially less certain claim (subordinated promissory notes issued by Maple Group) rather than direct ownership of a profitable operating asset. This shift reduces collateral quality and undermines recoveries for restricted group creditors. RATIONALE OF THE OUTLOOK The stable outlook reflects Moody's views that, at the Caa3 CFR and Ca senior secured debt rating, the high probability of a restructuring or distressed exchange over the next 12–18 months and the weak recovery prospects for existing creditors are already fully incorporated into the ratings. ESG CONSIDERATIONS Governance was a key driver for this rating action. The company announced a complex transaction that affects creditor recovery prospects but provided limited quantitative disclosure and no intragroup legal documentation. This approach reduces transparency and increases information risk. The use of perimeter adjustments and structurally senior financing reshapes the creditor hierarchy and shows a willingness to employ tools that materially shift risk within the capital structure. LIQUIDITY Pro forma for the Maple Group–Silekol transaction, Pfleiderer's liquidity is adequate at the consolidated level in 2025, as debt-funded liquidity fully offsets negative free cash flow. The benefit to the restricted group is less clear because the proceeds were raised at an unrestricted subsidiary and disclosures on intragroup cash movements remain limited. On a consolidated reported basis, Moody's expects Moody's-adjusted free cash flow of - EUR125 million to be fully offset by the EUR110 million super senior term loan and EUR25 million subordinated shareholder loan raised at Maple Group level. As a result, Moody's expects the company to close 2025 with EUR144 million of cash, including a fully drawn RCF. On the same consolidated basis, Moody's expects liquidity to be weak thereafter. Moody's forecasts Cash EBITDA of EUR69 million in 2026 and EUR88 million in 2027 to be largely consumed by cash interest of EUR68 million and EUR71 million, respectively. Working capital absorption of around EUR10 million per year and substantial capital expenditure (including lease principal) of EUR91 million in 2026 and EUR68 million in 2027 further reduce cash resources. These pressures result in sustained cash burn, with Moody's adjusted free cash flow of - EUR104 million in 2026 and - EUR67 million in 2027. Moody's therefore expect company's consolidated available liquidity to resume its declining trajectory—from EUR144 million at year end 2025 to EUR76 million at year end 2026 and EUR10 million at year end 2027— ahead of the EUR110 million super senior term loan maturing at Maple Group in December 2028. The super senior RCF includes a springing maintenance covenant, tested quarterly if net RCF utilization exceeds 40% of total commitments, imposing a maximum net drawn super senior debt to consolidated pro forma EBITDA ratio of 0.71x. Moody's expects Pfleiderer to trigger covenant testing by June 2027 and to report super senior net leverage of around 1.2x at that time STRUCTURAL CONSIDERATIONS The Ca ratings on the EUR750 million senior secured notes, one notch below the Caa3 CFR, reflects their weakened claim relative to the EUR65 million super senior secured RCF issued by PCF GmbH and the EUR110 million super senior secured loan issued by Maple Group. The Maple Group–Silekol transaction reduces the value of the common security package shared by the senior secured notes and the super senior RCF (customary share pledges, material bank accounts, and intragroup receivables). The transaction also introduces an upstream claim—subordinated promissory notes owed to PCF GmbH by Maple Group—that sits structurally and contractually behind Maple Group's new EUR110 million super senior secured loan, further weakening recovery prospects for the senior secured notes. The Caa3-PD PDR, aligned with the CFR, reflects Moody's standard assumptions of a 50% family recovery rate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the high likelihood of a restructuring and the weakened structural position of existing creditors, Moody's sees limited scope for upward rating pressure in the near term. A rating upgrade would require Pfleiderer to deliver a material and sustained improvement in operating performance, cash flow generation, and liquidity sufficient to support a durable capital structure. Improved transparency and timely disclosure—particularly on group structure, intercompany arrangements, and liquidity accessible to creditors—would also support upward pressure. A comprehensive restructuring that results in a sustainable capital structure could likewise lead to an upgrade. Conversely, Moody's could downgrade the ratings if operating performance or liquidity deteriorates further, increasing the likelihood of a distressed exchange or payment default and reducing expected recoveries relative to current rating assumptions. Additional transactions that further subordinate or impair restricted group creditors would also create downward pressure. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Paper and Forest Products published in November 2025. 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. PROFILE Pfleiderer is one of the leading European manufacturers of engineered wood products and laminates, with a strong presence in Germany. Its Engineered Wood Products (EWP) division produces chipboard, medium- and high-density fiberboard (MDF/HDF), surface-finished panels, and specialty boards for kitchen, furniture, and construction industries. The company also operates Silekol, a Poland based chemical division that manufactures resins and adhesives for internal use by EWP and for external industrial customers in the wood-processing sector. Since December 2025, Pfleiderer retains 10% direct ownership in Silekol, while the remaining 90% is held indirectly through its unrestricted subsidiary, Maple Group. In the last twelve months ending September 2025, the company generated EUR835 million in revenue (including EUR245 million generated by Silekol business division) and EUR80 million in company-adjusted EBITDA (including EUR28 million generated by Silekol business division). Since August 2019, Pfleiderer has been under the ownership of investment firm Strategic Value Partners LLC, which delisted the company—formerly known as Pfleiderer Group S.A.—from the Warsaw Stock Exchange in November 2019 and subsequently relocated its holding structure to Germany in July 2020. ============= I R E L A N D ============= BARINGS EURO 2024-1: Fitch Assigns 'B-sf' Rating on Cl. F-R Notes ----------------------------------------------------------------- Fitch Ratings has assigned Barings Euro CLO 2024-1 DAC reset notes final ratings. Entity/Debt Rating Prior ----------- ------ ----- Barings Euro CLO 2024-1 DAC A-R Loan LT AAAsf New Rating A-R Notes XS3276198457 LT AAAsf New Rating B-R XS3276198614 LT AAsf New Rating C-R XS3276198887 LT Asf New Rating Class A loan LT PIFsf Paid In Full AAAsf Class A notes XS2831525709 LT PIFsf Paid In Full AAAsf Class B notes XS2831526772 LT PIFsf Paid In Full AAsf Class C notes XS2831526004 LT PIFsf Paid In Full Asf Class D notes XS2831526186 LT PIFsf Paid In Full BBB-sf Class E notes XS2831526939 LT PIFsf Paid In Full BB-sf Class F notes XS2831526426 LT PIFsf Paid In Full B-sf D-R XS3276199000 LT BBB-sf New Rating E-R XS3276199265 LT BB-sf New Rating F-R XS3276199422 LT B-sf New Rating X-R XS3276198028 LT AAAsf New Rating Transaction Summary Barings Euro CLO 2024-1 DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to redeem all the existing notes, except for the subordinated notes, and to fund the portfolio, which is managed by Barings (U.K.) Limited, to a target par of EUR400 million. The collateralised loan obligation (CLO) has a 4.7-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 at 'B+'/'B'. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 22.7. 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 (WARR) of the identified portfolio is 63.3%. Diversified Portfolio (Positive): The transaction includes various concentration limits, including a top-10 obligor concentration limit at 20%, a maximum of 40% to the three largest Fitch-defined industries and a fixed-rate asset limit of 12.5%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has an approximately 4.7-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. The transaction includes four Fitch test matrices, two effective at closing and another two effective one year after closing, subject to the aggregate collateral balance (defaults at Fitch collateral value) being at least at the reinvestment target par. The closing matrices correspond to an 8.5-year WAL covenant and the two forward matrices correspond to a 7.5-year WAL covenant. All the matrices are based on the same top 10 obligors limit and fixed-rate asset limits of 5% and 12.5%. 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. These conditions include passing the coverage tests and the Fitch 'CCC' bucket limitation test, and 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) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class X-R to C-R notes, would lead to downgrades of one notch each on the class D-R to E-R notes and to below 'B-sf' for the class F-R notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The class B-R and D-R to F-R notes each have a rating cushion of two notches and the class C-R notes have three notches due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches each for the class A-R to D-R notes and to below 'B-sf' for the class E-R and F-R notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches each for the rated notes, except for the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than- expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from a stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Barings Euro CLO 2024-1 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. BLACKROCK EUROPEAN XI: Moody's Cuts EUR12MM F Notes Rating to Caa1 ------------------------------------------------------------------ Moody's Ratings has taken a variety of rating actions on the following notes issued by of BlackRock European CLO XI Designated Activity Company: EUR27,400,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Aug 26, 2021 Definitive Rating Assigned Aa2 (sf) EUR20,600,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Aug 26, 2021 Definitive Rating Assigned Aa2 (sf) EUR25,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Upgraded to A1 (sf); previously on Aug 26, 2021 Definitive Rating Assigned A2 (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Downgraded to Caa1 (sf); previously on Aug 26, 2021 Definitive Rating Assigned B3 (sf) Moody's have also affirmed the ratings on the following notes: EUR239,000,000 (Current oustanding amount EUR213,665,755) Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Aug 26, 2021 Definitive Rating Assigned Aaa (sf) EUR27,250,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Aug 26, 2021 Definitive Rating Assigned Baa3 (sf) EUR20,250,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Aug 26, 2021 Definitive Rating Assigned Ba3 (sf) BlackRock European CLO XI Designated Activity Company, issued in August 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Blackrock Investment Management (UK) Limited. The transaction's reinvestment period ended in January 2026. RATINGS RATIONALE The rating upgrades on the Class B-1, Class B-2 and Class C notes are primarily a result of the transaction having reached the end of the reinvestment period in January 2026. The downgrade on the rating on the Class F notes is primarily a result of the loss of par in the past 12 months. The affirmations on the ratings on the Class A, Class D and Class E notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR388.0m Defaulted Securities: EUR3.0m Diversity Score: 58 Weighted Average Rating Factor (WARF): 2957 Weighted Average Life (WAL): 4.15 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.64% Weighted Average Coupon (WAC): 2.99% Weighted Average Recovery Rate (WARR): 43.32% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in October 2025. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. CAIRN CLO VII: Fitch Lowers Rating on Class E Notes to 'BB-sf' -------------------------------------------------------------- Fitch Ratings has downgraded Cairn CLO VII DAC's class E notes and affirmed the others. Entity/Debt Rating Prior ----------- ------ ----- Cairn CLO VII DAC A-1R XS2066880928 LT AAAsf Affirmed AAAsf A-2 XS1538266682 LT AAAsf Affirmed AAAsf B XS1538266849 LT AAAsf Affirmed AAAsf C-R XS2066883195 LT A+sf Affirmed A+sf D XS1538267490 LT BBB+sf Affirmed BBB+sf E XS1538267227 LT BB-sf Downgrade BBsf F XS1538268381 LT B-sf Affirmed B-sf Transaction Summary Cairn CLO VII DAC is a cash flow CLO. The underlying portfolio of assets mainly consists of leveraged loans and is managed by Cairn Loan Investments, LLP. The deal exited its reinvestment period in January 2021. KEY RATING DRIVERS Increasing LDA: The downgrade of the the class E and Negative Outlook on them and the class F notes reflect the continuous increase in exposure to assets with a maturity beyond the legal final maturity of the transaction (long-dated assets; LDA) Fitch calculates that LDA increased to 19.4% in December 2025 due to maturity extensions and portfolio amortisation, from 8.9% at the last review in January 2025. According to its criteria, Fitch deems LDA expose the notes to market value risk and assumes they are subject to a fire sale prior to or at the last payment period, with the notes receiving only the assumed recovery value. Unlike recent CLOs, the transaction documentation does not envisage any haircut for LDA in the adjusted collateral principal amount used to calculate the coverage tests. However, the LDA bucket is currently made up of majority performing credits and the manager has the ability to sell these assets, limiting potential trading losses. Performance and Refinancing Risk: The Negative Outlooks on the class E and F notes also reflect exposure to EUR6.4 million of defaulted assets, a par erosion of 3.5% and near- and medium-term refinancing risk (with about 17,1% of assets maturing in 2027, no assets are maturing in 2026). This may lead to further deterioration in the portfolio, resulting in the risk of downgrades for the notes although within their current rating category. Transaction Deleveraging: The class A-1 and A-2 notes have paid down EUR 92.6 million (43.3%), which has resulted in an increase in credit enhancement across the class A to D notes. This increase in cushion supports their Stable Outlooks. Credit enhancement for the class E and F notes has decreased due to losses in the portfolio. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'. The weighted average rating factor (WARF) of the current portfolio is 24.5 as calculated by Fitch under its latest criteria. About 14.7% of the portfolio is currently on Negative Outlook. High Recovery Expectations: Senior secured obligations comprise 100% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the current portfolio is 59.6% Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 27.5%, and no obligor represents more than 3.2% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 31.8% as calculated by Fitch. Fixed-rate assets are reported by the trustee at 3.5%, currently complying with the limit of 5%. Transaction Outside Reinvestment Period: Most senior notes are deleveraging, leading to increased credit enhancement from closing in May 2018, despite the portfolio erosion. The manager can reinvest unscheduled principal proceeds and sale proceeds from credit-improved or -impaired obligations after the reinvestment period, subject to compliance with the reinvestment criteria. The transaction is failing the Fitch WARF test and the Fitch WARR tests but the manager can reinvest proceeds on a maintain-or-improve basis. Similarly, it is also failing another rating agency's WARF test but the manager may still be able to reinvest if the test is maintained after reinvestment. Cashflow Analysis: Fitch used a customised proprietary cash flow model to simulate the principal and interest waterfalls and the various structural features of the transaction, and to assess their effectiveness, including the structural protection provided by excess spread diverted through the par-value and interest-coverage tests. Deviation from MIR: The class D notes' rating is one notch above their model-implied rating (MIR) and the class E notes' rating is three notches above their MIR. These deviations reflect Fitch's view that the majority of the transaction's long-dated bucket comprises performing credits and the remaining transaction life provides the manager with flexibility to sell LDA, limiting potential trade losses. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Based on the current portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. The class E and F notes may be downgraded unless the manager sells the LDAs prior to the legal final maturity without significant trading losses. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may occur on stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Cairn CLO VII DAC Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Cairn CLO VII DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. RRE 18 LOAN: S&P Assigns BB-(sf) Rating on Class D-R Notes ---------------------------------------------------------- S&P Global Ratings assigned credit ratings to RRE 18 Loan Management DAC's class A-1A-R and A-1B-R loans, and class A-1-R, A-2-R, B-R, C-R, and D-R notes. At closing, the issuer has EUR46.20 million in unrated subordinated notes, EUR1.00 million in performance notes, and EUR0.25 million in preferred return notes outstanding from the existing transaction. The ratings on the original notes and loans have been withdrawn. This transaction is a reset of the already existing transaction that closed in April 2024. The issuance proceeds of the refinancing notes and loans were used to redeem the refinanced loans and notes, and pay fees and expenses incurred in connection with the reset. S&P has withdrawn its ratings on the original notes and loans. Under the transaction documents, the rated notes and loans will pay quarterly interest, unless a frequency switch event occurs. Following such an event, the notes and loans would permanently switch to semiannual payments. The portfolio's reinvestment period ends 4.83 years after closing; the noncall period ends 1.5 years after closing. The ratings assigned to the reset notes and loans 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 and loans through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with our counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,672.88 Default rate dispersion 604.85 Weighted-average life (years) 4.83 Obligor diversity measure 117.54 Industry diversity measure 22.45 Regional diversity measure 1.20 Country concentration in sovereigns rated below 'AA-' (%) 23.75 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B Portfolio target par (mil. EUR) 400.00 'CCC' category rated assets (%) 1.42 Target 'AAA' weighted-average recovery (%) 36.39 Target weighted-average spread (%) 3.42 Target weighted-average coupon (%) 3.25 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 EUR400 million target paramount, the covenanted weighted-average spread (3.40%), and the actual weighted-average coupon (3.25%). We assumed the actual weighted-average recovery rates at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios, for each liability rating category." Until Oct. 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 and loans. 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, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for class A-2-R to C-R notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the CLO is in its reinvestment period, during which the transaction's credit risk profile could deteriorate, we have capped the assigned ratings." The ratings on the class A-1-R and D-R notes, and class A-1A-R and A-1B-R loans can withstand stresses commensurate with their 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-1-R, A-2, B-R, C-R, and D-R notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also assessed the sensitivity of our ratings on the class A-1-R to class D-R notes, based on four hypothetical scenarios." 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 industries. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings Amount Credit Interest Class Rating* (mil. EUR) enhancement (%) rate§ A-1-R AAA (sf) 131.00 38.50 Three/six-month EURIBOR plus 1.23% A-1A-R Loan AAA (sf) 85.00 38.50 Three/six-month EURIBOR plus 1.23% A-1B-R Loan AAA (sf) 30.00 38.50 Three/six-month EURIBOR plus 1.23% A-2-R AA (sf) 38.00 29.00 Three/six-month EURIBOR plus 1.60% B-R A (sf) 32.00 21.00 Three/six-month EURIBOR plus 1.95% C-R BBB- (sf) 28.00 14.00 Three/six-month EURIBOR plus 2.65% D-R BB- (sf) 18.00 9.50 Three/six-month EURIBOR plus 4.60% Sub notes NR 46.20 N/A N/A Performance Notes NR 1.00 N/A N/A Preferred Return notes NR 0.25 N/A N/A *The ratings assigned to the class A-1-R notes, A-1A-R loan, A-1B-R loan, and A-2-R notes address timely interest and ultimate principal payments. The ratings assigned to class B-R, C-R, and D-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. =================== K A Z A K H S T A N =================== AB KAZAKHSTAN-ZIRAAT: Fitch Alters Outlook on 'B+' IDR to Positive ------------------------------------------------------------------ Fitch Ratings has revised AB Kazakhstan - Ziraat International Bank JSC's (KZI) Outlooks to Positive from Stable, while affirming its Long-Term (LT) Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B+'. Fitch has also revised the Outlook on the bank's National LT Rating to Positive from Stable and affirmed it at 'BBB(kaz)'. The rating action follows the revision of the Outlook on the parent Turkiye Cumhuriyeti Ziraat Bankasi Anonim Sirketi's (Ziraat) 'BB-' LT Foreign-Currency IDR to Positive from Stable. Key Rating Drivers KZI's LT IDRs and National LT Rating reflect potential support from Ziraat, as captured by its 'b+' Shareholder Support Rating. The Positive Outlook on KZI's IDRs mirrors that on the parent's LT Foreign-Currency IDR. In Fitch's view, Ziraat has a high propensity to support KZI, due to strong operational integration, its virtually full ownership and high reputational risk for the parent from a KZI default, given common branding and Ziraat's broader international presence. In addition, the cost of potential support is low, considering the subsidiary's small size relative to the parent's (end-3Q25: 0.3% of the group's consolidated assets), and the record of extraordinary equity support (2022: 21% of risk-weighted assets). The one notch difference between KZI's and Ziraat's IDRs reflects the strategically important but non-core and small market KZI operates in. A potential divestment of KZI would not fundamentally alter Ziraat's group franchise. KZI's 'BBB(kaz)' National Rating reflects Fitch's view of the bank's creditworthiness relative to domestic peers'. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The Outlooks on the bank's LT IDRs would be revised to Stable if the Outlook on Ziraat's LT Foreign-Currency IDR was revised to Stable. A downgrade of KZI's LT IDRs would require a multi-notch downgrade of Ziraat's LT Foreign-Currency IDR. KZI's ratings could also be downgraded if Ziraat's propensity to support its subsidiary weakens considerably. The National Rating could be downgraded if KZI's creditworthiness weakens relative to local peers'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Ziraat's LT Foreign-Currency IDR would result in an upgrade of KZI's LT IDRs. The National Rating could be upgraded if KZI's creditworthiness strengthens relative to that of local peers, which could be triggered by an upgrade of the bank's LT Local-Currency IDR. Public Ratings with Credit Linkage to other ratings KZI's ratings are linked to Ziraat's IDRs. RATING ACTIONS Entity/Debt Rating Prior ----------- ------ ----- AB Kazakhstan – Ziraat International Bank JSC LT IDR B+ Affirmed B+ ST IDR B Affirmed B LC LT IDR B+ Affirmed B+ Natl LT BBB(kaz) Affirmed BBB(kaz) Shareholder Support b+ Affirmed b+ =================== L U X E M B O U R G =================== EOS FINCO: S&P Downgrades ICR to 'SD' on Debt Exchange Completion ----------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on global telecom distributor Eos Finco S.a.r.l. (Netceed) to 'SD' (selective default) from 'CCC-' and its issue-level rating on its senior secured debt to 'D' (default). S&P said, "We plan to reassess our ratings on Netceed in the coming days, incorporating its revised capital structure, cash flow outlook, and our forward-looking assessment of its creditworthiness. "The downgrade reflects Netceed's recapitalization transaction, which we view as tantamount to a default. On Feb. 2, 2026, the company announced it had completed the exchange of its term loans and RCF. Under the restructuring transaction, the existing debt obligations due in June 2029, totaling EUR918 million in euro term loans and $846 million in U.S. dollar term loans (including the conversion of the previously established acquisition capital spending facilities under which EUR20 million and $900,000 were outstanding) as of May 31, 2025, alongside a fully drawn EUR230 million RCF were exchanged for: -- Two term loans, totaling EUR355 million, denominated in euro and U.S. dollar, with a six-year maturity and annual 1% amortization that carry an interest rate of SOFR/EURIBOR + 5% margin; -- A new EUR70 million super senior RCF with delayed draw-down capabilities, of which EUR27.8 million are drawn at the transaction's close; -- Pay-in-kind holding company debt of EUR205 million; and -- A new contingent EUR30 million emergency funding basket, accessible only in the event of unforeseen circumstances, such as natural disasters, significant customer insolvency, or critical supply chain disruptions. As part of the transaction, ownership of the group has been transferred to a consortium of institutional investors, including Pemberton, Blue Owl, and Hayfin. A perpetual liquidity covenant, requiring a minimum of EUR30 million in liquidity at the end of each month, will be in effect until Nov. 30, 2027. Subsequently, a quarterly net senior leverage test, capped at 8.5x, will be implemented beginning Dec. 31, 2027. The company remains current on its other obligations, including its EUR70 million factoring facility and some bilateral loans. S&P said, "Although we view the transaction as a necessary step toward improving the company's capital structure, considering its very high leverage of more than 30x at year-end 2025, we consider the exchange of the first-lien term loans and RCF as distressed and tantamount to a default. This is because the lenders of both tranches will receive less than they were promised under the original securities, considering primarily the material debt write-off. "We expect to reassess our issuer credit rating on the company over the next few business days. It will incorporate the revised capital structure, cash flow outlook, and our forward-looking assessment of its creditworthiness." ========= S P A I N ========= EDREAMS ODIGEO: Fitch Corrects Dec. 19 Ratings Release ------------------------------------------------------ Fitch Ratings issued a corrected version of its ratings release on eDreams ODIGEO S.A. published on December 19, 2025 to include its Recovery Rating assumptions. The amended ratings release is as follows: Fitch Ratings has revised eDreams ODIGEO S.A.'s (eDreams) Outlook to Negative from Stable, while affirming its Long-Term Issuer Default Rating (IDR) at 'B+'. The Negative Outlook reflects its expectation of a deterioration in eDreams' credit metrics, alongside high execution risks as the company moves towards a global subscription, travel-centric online travel agent (OTA) from a European subscription, flight-centric OTA. Fitch projects financial leverage to temporarily rise to above 6x in FY27 (year-end March), before reducing to below 4.5x by FY28. The affirmation of the 'B+' IDR reflects eDreams' solid business model, with potential for an improving customer value proposition as the company expands into new verticals, despite some near-term challenges. A successful execution of the strategy by the experienced management team, with credit metrics weakening only temporarily in FY26-FY27, and free cash flow (FCF) remaining consistently positive, will be crucial to maintaining the ratings. Any underperformance to Fitch's forecasts in FY26 or FY27 could result in a rating downgrade. New Strategy Execution Risks: The Negative Outlook reflects the high execution risks arising from eDreams' new strategy to enter into rail and expand into new geographical markets, alongside a switch to monthly from annual subscription payments. Fitch sees execution risks in the company's ability to build partnerships and scale in these new product categories and new geographies while maintaining solid profitability metrics and positive FCF. The affirmation of the IDR reflects the strong record of management in executing previous strategic plans, including the growth of its prime subscription model. Ongoing Challenges: eDreams faces ongoing challenges, including the effect of its current dispute with Ryanair, which has led to the significant loss of access to Ryanair's flight inventory. Fitch expects the loss of access to slow the pace of new subscribers and bookings and weaken the company's value proposition to customers. The ability to manage the Ryanair dispute, alongside other challenges, such as pressures on average revenue per user (ARPU) and rising search engine optimisation costs, will be key to the future rating direction. FCF Pressures in Near Term: Fitch expects the shift to monthly payments for customers, alongside investment in expansion into new product categories to reduce FCF over the next 12-18 months. Fitch projects FCF at around EUR40 million in FY26 and close to zero (but still positive) in FY27, which is much lower than the EUR90 million-100 million a year Fitch had previously forecast, as the company undergoes its strategic transformation. Fitch expects FCF to rebuild from FY28, as investments in new product categories translate into sustained earnings and cash flow contribution. Leverage Peaking in FY27: Fitch projects leverage to peak at above 6.0x in 2027 as the new strategy implementation is underway, with higher investments and temporarily softer profitability pressuring credit metrics. Fitch expects leverage to decline to about 4.5x in FY28 and 3.1x in FY29, as benefits of the new strategy materialise and profitability improves, supported by EBITDA growth and positive FCF. Continued delivery on the strategy and disciplined capex is key to achieving the deleveraging trajectory. Maturing Business Profile: eDreams is strengthening its business profile through diversification beyond flights, including expansion into European rail and into new geographies, which broadens its addressable market and reduces product and services concentration risk. This could strengthen user loyalty, and consequently increase customer retention for the existing service, as subscribers perceive greater value from their monthly subscription fee. Further, the broader offering and geographic reach may attract new users to the platform, supporting subscriber growth and enhancing network effects. Liquidity Satisfactory: Liquidity remains adequate although it is weakening due to strategic changes and increased investment needs weighing on EBITDA and profitability in the short-to-medium term. Fitch expects FCF margins to decline to the low-to-mid single digits from the high single digits over 2026-2028, eroding liquidity headroom. However, eDreams has a revolving credit facility (RCF) of EUR205 million (currently undrawn) that supports liquidity and financial flexibility. eDreams aligns more closely with larger peers, such as Expedia Group, Inc. (BBB/Stable) and Booking.com, and, to a lesser degree, shares similarities with Global Business Travel Group, Inc. (GBTG; BB/Positive) within the broader travel sector. eDreams is smaller and less diversified than global online travel agents, such as Expedia and Booking.com, with smaller scale and a narrower range of offerings across hotels, flights, cars, and insurance. Fitch considers eDreams' subscription-based business model to be less mature than the transactional models used by Expedia and Booking.com. The rating gap with Expedia also reflects the latter's stronger financial flexibility. eDreams and GBTG serve different parts of the travel market: eDreams focuses mainly on European leisure with a developing subscription model, while GBTG concentrates on corporate travel with more personalised services and long-term client relationships. GBTG maintains slightly higher EBITDA margins in the 20% range and lower EBITDA leverage of around 3.0x. Technology companies, such as TeamSystem S.p.A. (B/Stable) and Sophos Intermediate I Limited (B/Stable), although not direct competitors and not fully comparable in their business models, also use subscription-based models. Both have materially lower churn as B2B relative to eDreams, supporting stronger revenue visibility with over 80% recurring revenue. Their EBITDA margins are also higher - trending toward 38% for TeamSystem and mid-20% for Sophos - versus below 15% expected for eDreams over 2026-2028. However, eDreams has lower financial leverage than these peers and higher diversification than TeamSystem, leading to the one-notch rating differential. Fitch's Key Rating-Case Assumptions - Addition of 0.6 million new prime subscribers in FY26 - No deterioration in churn rates and increasing share of subscribers that have been with the company for two and more years - Prime ARPU remaining broadly stable over FY26-FY28, after declining towards EUR70 in FY26 from EUR75 in FY25 - Fitch-adjusted EBITDA declining to EUR105 million in FY26 and EUR62 million in FY27 due to investments in new product categories and the switch to monthly payments, before recovering towards EUR100 million by FY28 - Stable working capital, after adjusting for changes in deferred prime subscriber revenue, to FY28 - Fixed costs at up to EUR140million by FY29 (excluding personnel costs that Fitch reclassifies from capex) - Capex of around EUR60 million-80 million a year, out of which 80% is expensed, reducing Fitch-adjusted EBITDA - No bolt-on M&A - Share buybacks of around EUR60 million FY26 and EUR40 million in FY27 RECOVERY ANALYSIS In its recovery analysis, Fitch would consider eDreams to be a going concern in bankruptcy that would be reorganised rather than liquidated. Fitch has assumed a 10% administrative claim in the recovery analysis. Fitch assumes a going-concern EBITDA of EUR80 million (unchanged from its previous assessment), which Fitch believes should be sustainable after restructuring. Fitch assumes a 5.0x distressed enterprise value/EBITDA multiple, reflecting a weaker competitive position than global leaders. The above-mentioned assumptions result in a distressed enterprise value of about EUR360 million. Based on the payment waterfall, Fitch has assumed the group's EUR205 million revolving credits to be fully drawn and ranking senior to its EUR375 million senior secured notes. Its waterfall analysis generates a ranked recovery for its senior secured debt in the 'RR4' band, indicating a 'B+' instrument rating, in line with eDreams' IDR. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Increasing churn rates or diminishing share of prime subscribers that have been with the company for two and more years or further decrease in ARPU, leading to declining or stagnating profitability - EBITDA leverage above 4.5x on a sustained basis - FCF margins reducing to low single digits Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Maturity of the subscription business model, reflected in reduced churn rates and higher proportion of subscribers that stay with the company for two or more years - Increased business scale with EBITDA above EUR200 million on a sustained basis, alongside improving product and geographical diversification - Fitch-adjusted EBITDA margins trending above 20%, alongside FCF margins sustained in the high single digits - EBITDA leverage below 3x on a sustained basis, supported by a consistent financial policy Liquidity and Debt Structure At end-September 2025, eDreams had EUR39.5 million of reported cash and a fully undrawn EUR205 million revolving credit facility available. Fitch projects FCF will remain positive at around EUR43 million (FCF margins of about 6%) in FY26, before reducing towards neutral levels in FY27 as the company invests in its new train proposition and expansion strategy. Fitch projects FCF to return to sustainably positive levels from FY28. The group's debt maturity profile is manageable without meaningful debt repayments due before 2030. Issuer Profile eDreams is a travel subscription platform and is one of the largest e-commerce businesses in Europe. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- eDreams ODIGEO S.A. LT IDR B+ Affirmed senior secured LT B+ Affirmed RR4 =========== T U R K E Y =========== DFS FUNDING: Fitch Affirms BB+ Ratings on Notes Frm Several Series ------------------------------------------------------------------ Fitch Ratings has revised the Outlook on the notes issued by six Turkish diversified payment rights (DPR) programmes to Positive from Stable and affirmed the ratings. Fitch has also affirmed Ziraat DPR Finance Company's rating with Positive Outlook. These rating actions follow the recent rating actions on the originating banks and the rating action on Turkiye's sovereign ratings. Entity/Debt Rating Prior ----------- ------ ----- Yapi Kredi Diversified Payment Rights Finance Company Ltd 2013-D XS0950411834 LT BBB- Affirmed BBB- 2014-A XS1118209375 LT BBB- Affirmed BBB- 2015-F XS1261205915 LT BBB- Affirmed BBB- 2018-A XS1760837275 LT BBB- Affirmed BBB- 2019-B XS1957348441 LT BBB- Affirmed BBB- 2021-E TR009A70V4W4 LT BBB- Affirmed BBB- 2021-G TR009A70V4Y0 LT BBB- Affirmed BBB- 2021-H TR009A70V6A5 LT BBB- Affirmed BBB- 2021-I TR009A70V6J6 LT BBB- Affirmed BBB- 2023-A KYMM004U64H3 LT BBB- Affirmed BBB- 2023-B KY009A8LE1M9 LT BBB- Affirmed BBB- 2023-C KYMM004U64J9 LT BBB- Affirmed BBB- 2023-D KY009A8MXNP3 LT BBB- Affirmed BBB- 2023-E KYMM004U64P6 LT BBB- Affirmed BBB- 2023-F KYMM004U64Y8 LT BBB- Affirmed BBB- 2023-G KY009A8LDVF1 LT BBB- Affirmed BBB- 2023-H KYMM004V5UV5 LT BBB- Affirmed BBB- 2025-A US009AADCAP5 LT BBB- Affirmed BBB- 2025-B US009AADCAV3 LT BBB- Affirmed BBB- 2025-C XS3105004611 LT BBB- Affirmed BBB- 2025-D US009AADCBC1 LT BBB- Affirmed BBB- 2025-E US009AADCGM9 LT BBB- Affirmed BBB- Garanti Diversified Payment Rights Finance Company Series 2012-A LT BBB- Affirmed BBB- Series 2013-E XS0997596746 LT BBB- Affirmed BBB- Series 2014-A XS1051841234 LT BBB- Affirmed BBB- Series 2015-B XS1255923689 LT BBB- Affirmed BBB- TIB Diversified Payment Rights Finance Company Series 2014-B LT BBB- Affirmed BBB- Series 2015-B XS1210043136 LT BBB- Affirmed BBB- Series 2016-B XS1508150452 LT BBB- Affirmed BBB- Series 2016-E XS1529855253 LT BBB- Affirmed BBB- Series 2016-F XS1508150023 LT BBB- Affirmed BBB- Series 2017-H XS1739379623 LT BBB- Affirmed BBB- Series 2017-I XS1739379979 LT BBB- Affirmed BBB- Series 2022-A USMM0044CVQ9 LT BBB- Affirmed BBB- Series 2022-B USMM0044CW06 LT BBB- Affirmed BBB- Series 2023-A KYMM004WWV65 LT BBB- Affirmed BBB- Series 2023-B KYMM004WWV40 LT BBB- Affirmed BBB- Series 2023-C KYMM004WWV81 LT BBB- Affirmed BBB- Series 2023-D LT BBB- Affirmed BBB- Series 2024-B KYMM004Z5WJ2 LT BBB- Affirmed BBB- Series 2024-C KYMM004Z5VU1 LT BBB- Affirmed BBB- Series 2024-D KY009A977U41 LT BBB- Affirmed BBB- Series 2024-E LT BBB- Affirmed BBB- Series 2024-F LT BBB- Affirmed BBB- Series 2024-G KYMM005KF8U9 LT BBB- Affirmed BBB- Series 2024-H KY009A9JC5A0 LT BBB- Affirmed BBB- Series 2024-I XS2906244442 LT BBB- Affirmed BBB- Series 2024-J KY009A9JC523 LT BBB- Affirmed BBB- Series 2024-K XS2906245092 LT BBB- Affirmed BBB- Series 2024-L LT BBB- Affirmed BBB- Ziraat DPR Finance Company Series 2023-A LT BBB- Affirmed BBB- Series 2023-B LT BBB- Affirmed BBB- Series 2024-A G9890#AA1 LT BBB- Affirmed BBB- Series 2024-B LT BBB- Affirmed BBB- Series 2025-A US009AA3UOZ2 LT BBB- Affirmed BBB- Series 2025-B LT BBB- Affirmed BBB- Series 2025-C LT BBB- Affirmed BBB- Series 2025-D LT BBB- Affirmed BBB- Series 2025-E LT BBB- Affirmed BBB- Series 2025-F LT BBB- Affirmed BBB- Series 2025-G LT BBB- Affirmed BBB- Series 2025-H LT BBB- Affirmed BBB- Series 2026-A LT BBB- Affirmed BBB- VB DPR Finance Company Tranche 2018-G XS1888267173 LT BBB- Affirmed BBB- Tranche 2019-A LT BBB- Affirmed BBB- Tranche 2021-A LT BBB- Affirmed BBB- Tranche 2021-B LT BBB- Affirmed BBB- Tranche 2021-D LT BBB- Affirmed BBB- Tranche 2021-E LT BBB- Affirmed BBB- Tranche 2021-F LT BBB- Affirmed BBB- Tranche 2021-G LT BBB- Affirmed BBB- Tranche 2021-H LT BBB- Affirmed BBB- Tranche 2023-A LT BBB- Affirmed BBB- Tranche 2023-B LT BBB- Affirmed BBB- Tranche 2023-C LT BBB- Affirmed BBB- Tranche 2023-D LT BBB- Affirmed BBB- Tranche 2023-E LT BBB- Affirmed BBB- Tranche 2023-F LT BBB- Affirmed BBB- Tranche 2023-G LT BBB- Affirmed BBB- Tranche 2023-H LT BBB- Affirmed BBB- Tranche 2023-I LT BBB- Affirmed BBB- Tranche 2024-A LT BBB- Affirmed BBB- Tranche 2024-B LT BBB- Affirmed BBB- Tranche 2024-C LT BBB- Affirmed BBB- Tranche 2024-D LT BBB- Affirmed BBB- Tranche 2024-E LT BBB- Affirmed BBB- Tranche 2024-F LT BBB- Affirmed BBB- Tranche 2025-A US009A9XTED2 LT BBB- Affirmed BBB- Tranche 2025-B LT BBB- Affirmed BBB- Tranche 2025-C LT BBB- Affirmed BBB- Tranche 2025-D LT BBB- Affirmed BBB- Tranche 2025-E LT BBB- Affirmed BBB- Tranche 2025-F LT BBB- Affirmed BBB- Tranche 2025-G LT BBB- Affirmed BBB- Tranche 2025-H LT BBB- Affirmed BBB- Tranche 2025-I LT BBB- Affirmed BBB- Tranche 2025-J LT BBB- Affirmed BBB- Tranche 2025-K LT BBB- Affirmed BBB- Tranche 2025-L LT BBB- Affirmed BBB- Tranche 2025-M LT BBB- Affirmed BBB- Tranche 2025-N LT BBB- Affirmed BBB- Tranche 2025-O LT BBB- Affirmed BBB- DFS Funding Corp. Series 2021-F KYMM0035HV80 LT BB+ Affirmed BB+ Series 2023-A LT BB+ Affirmed BB+ Series 2023-B LT BB+ Affirmed BB+ Series 2023-C LT BB+ Affirmed BB+ Series 2023-D LT BB+ Affirmed BB+ Series 2023-E LT BB+ Affirmed BB+ Series 2023-F LT BB+ Affirmed BB+ Series 2023-G LT BB+ Affirmed BB+ Series 2023-H LT BB+ Affirmed BB+ Series 2025-A LT BB+ Affirmed BB+ Series 2025-B LT BB+ Affirmed BB+ Series 2025-C LT BB+ Affirmed BB+ Series 2025-D LT BB+ Affirmed BB+ Series 2025-F LT BB+ Affirmed BB+ Series 2025-I LT BB+ Affirmed BB+ Series 2025-J LT BB+ Affirmed BB+ Series 2025-K LT BB+ Affirmed BB+ Bosphorus Financial Services Limited Series 2017-B XS1735543628 LT BBB- Affirmed BBB- Transaction Summary The DPR programmes are financial future flow programmes backed by the originating banks' generation of foreign-currency flows (typically denominated in US dollars, euros or sterling). Collateral consists of the banks' existing and future rights to receive foreign-currency payments into their accounts with correspondent banks abroad. DPRs can arise for a variety of reasons including payments due on the export of goods and services, capital flows, tourism and personal remittances. This commentary includes all the seven DPR programmes Fitch currently rates. Akbank T.A.S.'s A.R.T.S. Ltd. programme repaid all notes in December 2025. KEY RATING DRIVERS The Positive Outlooks on DPR ratings reflect that on the originators' Long-Term Local-Currency Issuer Default Ratings (LTLC IDRs) and on Turkiye's LTLC IDR. This reflects the continuation of fairly tight macroeconomic policies and a further improving operating environment since 2024. The rating actions are driven by the originators' LTLC IDRs and the uplift from these ratings, given that there is no change in Fitch's view of the other two relevant key rating drivers from the sector criteria, ie. the originators' going-concern assessments (GCA) and diversion risk. In particular, the notching is driven by the composition of the future flows generated by the banks, in terms of volatility and concentration alongside several metrics, debt service coverage ratio (DSCR) and the size of the DPR programme relative to the originator's other wholesale funding. Five programmes are sponsored by banks with a GCA of 'GC1' (TIB DPR, Yapi Kredi DPR, VB DPR, Ziraat DPR and Garanti DPR) allowing a maximum uplift of six notches, and two programmes by 'GC2' banks (QNB Bank and Denizbank) allowing a maximum uplift of four notches. Given the current levels of the DPR ratings, no programme currently benefits from the maximum uplift permitted by the sector criteria. The DSCR and DPR debt shares below are based on the DPR programme sizes as of 30 January 2026. Financials are as of end-September 2025. The DSCR figures below are based on offshore flows processed through designated depositary banks with data updated till end-2025 and incorporate Fitch's interest-rate stresses from the criteria. Fitch also tested DPR flows' sufficiency and sustainability, including FX stresses, a reduction in payment orders based on the top 20 beneficiaries concentration, a fall in remittances based on the steepest quarterly decline in the last five years and the exclusion of large single flows exceeding USD35 million. VB DPR Fitch has affirmed VB DPR's notes at 'BBB-' and revised the Outlook to Positive from Stable. It reflects an unchanged three-notch uplift from Turkiye Vakiflar Bankasi T.A.O.'s LTLC IDR of 'BB-'/Positive. Fitch calculates the monthly DSCR for the programme at 72x, based on the average monthly flows of the past 12 months and at 22x, based on the lowest monthly flows over the past five years. The former is within the median range among peers while the latter is at the lower end. In recent years, Vakif has expanded its balance sheet and increased its market share in various sectors, which contributed to its higher current flows. Fitch analyses the programme based on a forward-looking view and places more weight on its recent flow levels than the lower flow levels from five years ago. The outstanding DPR debt is 12.9% of the bank's non-deposit funding and 25.8% of the bank's LT funding, both at the higher end compared with other programmes. VB DPR has a high level of top 20 beneficiaries concentration but is in line with the median for large flows exposure, compared with peers. Ziraat DPR Fitch has affirmed Ziraat DPR's notes at 'BBB-' and revised the Outlook to Positive from Stable on 29 January 2026 as part of the rating assignment of a new issue, series 2026-A (see Fitch Rates Ziraat DPR Finance Company's Series 2026-A 'BBB-'; Outlook Positive). It reflects an unchanged three-notch uplift from Turkiye Cumhuriyeti Ziraat Bankasi A.S.'s LTLC IDR of 'BB-'/Positive. Fitch calculates the monthly DSCR for the programme at 51x, based on the average monthly flows of the past 12 months and at 21x, based on the lowest monthly flows over the past five years. The former is at the median to lower end compared with peers while the latter is at the lower end. In recent years, Ziraat has expanded its balance sheet and increased its market share in various sectors, which contributed to its higher current flows. Fitch analyses the programme based on a forward-looking view and places more weight on its recent flow levels than the lower flow levels from five years ago. The outstanding DPR debt is 6.2% of the bank's non-deposit funding and 12.5% of the bank's LT funding, at the median level among peer programmes. Ziraat DPR has a median to high level of top 20 beneficiaries concentration and large flows exposure, compared with peers. Garanti DPR Fitch has affirmed Garanti DPR's notes at 'BBB-' and revised the Outlook to Positive from Stable. It reflects an unchanged three-notch uplift from Turkiye Garanti Bankasi A.S.'s LTLC IDR of 'BB-'/Positive. Fitch calculates the monthly DSCR for the programme at 77x, based on the average monthly flows of the past 12 months, and 54x based on the lowest monthly flows over the past five years. Both metrics are at the median to higher end compared with peers. The outstanding DPR debt is 12.4% of the bank's non-deposit funding and 19% of the bank's LT funding, both at the higher end compared with other programmes. Garanti DPR has a low level of top 20 beneficiaries concentration and large flows exposure, compared with peers. TIB DPR Fitch has affirmed TIB DPR's notes at 'BBB-' and revised the Outlook to Positive from Stable. It reflects an unchanged three-notch uplift from Turkiye Is Bankasi A.S.'s LTLC IDR of 'BB-'/Positive. Fitch calculates the monthly DSCR for the programme at 94x, based on the average monthly flows of the past 12 months and at 47x, based on the lowest monthly flows over the past five years. The former is at the higher end compared with peers while the latter is within the median range. The outstanding DPR debt is about 5.4% of the bank's non-deposit funding and 9.6% of the bank's LT funding, at the median level compared with other programmes. TIB DPR has a median level of top 20 beneficiaries concentration and a low level of large flows exposure, compared with peers. Yapi Kredi DPR Fitch has affirmed Yapi Kredi DPR's notes at 'BBB-' and revised the Outlook to Positive from Stable. It reflects an unchanged three-notch uplift from Yapi ve Kredi Bankasi A.S.'s LTLC IDR of 'BB-'/Positive. Fitch calculates the monthly DSCR for the programme at 47x, based on the average monthly flows of the past 12 months, and at 28x based on the lowest monthly flows over the past five years. Both metrics are at the lower end compared with peers. The outstanding DPR debt is about 11% of the bank's non-deposit funding and 16.6% of the bank's LT funding, both at the higher end compared with other programmes. Yapi Kredi DPR has a high concentration of the top 20 beneficiaries and exposure of large flows, compared with peers. Bosphorus Fitch has affirmed Bosphorus's notes at 'BBB-' and revised the Outlook to Positive from Stable. It reflects an unchanged three-notch uplift from QNB Bank A.S.'s LTLC IDR of 'BB-'/Positive. Fitch calculates the monthly DSCR for the programme at 211x, based on the average monthly flows of the past 12 months and at 124x, based on the lowest monthly flows over the past five years. Both metrics are at the highest level among peers. The outstanding DPR debt is 1.2% of the bank's non-deposit funding and 2% of the bank's LT funding, both at the lowest level among peer programmes. Bosphorus has a median to high level of top 20 beneficiaries concentration and a median level of large flows exposure, compared with peers. While the Positive Outlook on the DPR notes indicates a likelihood of rating upgrade should there be an upgrade on the originator's LC IDR, this is subject to the robustness of the DPR flows, exceptionally strong DSCRs and appropriate level of DPR debt as a percentage of the originator's funding profile to maintain the high notching uplift from the originator's LTLC IDR given its GC2 score. Fitch's Future Flow Securitisation Rating Criteria envisage a further tempering of the notching uplift when originator's rating goes up the rating scale, as the potential for bankruptcy is more remote and the predictability of the outcome is more uncertain. DFS Fitch has affirmed DFS's notes at 'BB+' and revised the Outlook to Positive from Stable. It reflects an unchanged two-notch uplift from Denizbank A.S.'s LTLC IDR of 'BB-'/Positive. Fitch calculates the monthly DSCR for the programme at 36x, based on the average monthly flows of the past 12 months and at 23x, based on the lowest monthly flows over the past five years. Both metrics are at the lower end compared with peers. The outstanding DPR debt is 9.7% of the bank's non-deposit funding and 12.2% of the bank's LT funding, at the median to higher end compared with other programmes. DFS has a median to high level of top 20 beneficiaries concentration and a median level of large flows exposure, compared with peers. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The most significant variables affecting the programme's ratings are the originator's credit quality, the GCA score, the DPR flows, the DSCRs and the relative programme size. Fitch would analyse a change in any of these variables for the impact on the ratings. The last variable is measured through the level of future flow debt as a percentage of the bank's overall liability profile, its non-deposit funding and LT funding. This is factored into Fitch's analysis to determine the notching differential, given the GCA score. In addition, the ratings of The Bank of New York Mellon, as the transaction account bank, would constrain the ratings of DPR debt if they were below those of the DPR debt and if no remedial action was taken. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The main constraint to the DPR rating is the originator's credit quality and its operating environment. Positive action on the originator's LTLC IDR could contribute positively to the DPR rating. Improvements in economic conditions could also contribute positively to DPR flow performance and hence the ratings. An upgrade of the originator's LTLC IDR could result in an upgrade of the DPR notes' ratings, as reflected in the Positive Outlook, subject to the stability of underlying DPR flows, sufficient DSCRs and appropriate level of DPR debt as a percentage of the originator's funding profile. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has not conducted any checks on the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. =========================== U N I T E D K I N G D O M =========================== AB SITE: Leonard Curtis Named as Administrators ----------------------------------------------- AB Site Solutions Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Leeds, Insolvency & Companies List (ChD), Court Number CR-2026-000035, and Ryan Holdsworth and Stephen Beverley of Leonard Curtis were appointed as joint administrators on January 26, 2026. AB Site Solutions Ltd engaged in agents involved in the sale of timber and building materials. The company's registered office and principal trading address is at Unit 18 Horbury Junction Industrial Estate, Horbury, West Yorkshire, WF4 5ER. The joint administrators can be reached at: Ryan Holdsworth (IP No. 23410) Stephen Beverley (IP No. 28070) Leonard Curtis 4th Floor, Fountain Precinct Leopold Street Sheffield, S1 2JA For further details, contact: The Administrators Tel No: 0114 285 9503 Alternative contact: Shannon Jones Email: Shannon.jones@leonardcurtis.co.uk ALLEN REID: Marshall Peters Named as Administrators --------------------------------------------------- Allen Reid Limited was placed into administration proceedings in the High Court of Justice, Court Number CR2026MAN000174, and Lee Morris and John Thompson of Marshall Peters were appointed as joint administrators on January 30, 2026. Allen Reid Limited engaged in information technology consultancy activities. The company's registered office and principal trading address is at 85 Great Portland Street, Great Portland Street, London, W1W 7LT. The joint administrators can be reached at: Lee Morris (IP No. 31850) John Thompson (IP No. 32230) Marshall Peters Heskin Hall Farm Wood Lane, Heskin Preston, PR7 5PA Tel No: 01257 452021 For further details, contact: Joe Mosson Marshall Peters Heskin Hall Farm Wood Lane, Heskin Preston, PR7 5PA Tel No: 01257 452021 Email: joemosson@marshallpeters.co.uk B&M EUROPEAN: Moody's Lowers CFR & Senior Secured Notes to Ba2 -------------------------------------------------------------- Moody's Ratings has downgraded to Ba2 from Ba1 the corporate family rating of B&M European Value Retail S.A. (B&M). Concurrently, Moody's downgraded to Ba2-PD from Ba1-PD the company's probability of default rating and to Ba2 from Ba1 the backed senior secured ratings, with a stable outlook. Previously, the rating was on review for downgrade. This action ends the review launched October 21, 2025 following B&M's disclosure of an accounting error[1] - later independently reviewed by EY - that led to a material cut in guidance for pre IFRS 16 EBITDA for the fiscal year ending March 2026. RATINGS RATIONALE Driving rating action is the projected deterioration across B&M's gross debt to EBITDA, operating cashflows and interest cover and (measured as (EBITDA – capex) / interest expense) – all in Moody's-adjusted terms. In the next 12-18 months, Moody's expects B&M's profitability to be lower than historic levels as a result of margin dilution arising from the turnaround plan well underway and underperformance of the Heron Foods division. In the short term, Moody's base case takes into consideration the B&M-guided 25% contraction in company-adjusted EBITDA (pre-IFRS16 EBITDA) for the current fiscal year[2]. Despite the board mandated EY review concluding with neither additional detrimental impacts beyond the previously identified GBP40 million accounting error, nor further accounting issues being identified, the downward revision in profitability expectations indicates continuing operational pressures. Initiatives to turn around profitability are well underway under various workstreams (FMCG pricing, SKU rationalisation and availability improvements). Moreover, B&M's focus on merchandising to make the stores a destination for Christmas shopping has delivered positive results. Nevertheless, Moody's expects it will take B&M time to improve its earnings from year-end fiscal 2026 projected levels amid persistently weak UK consumer sentiment. While B&M continues to commit to conservative financial policies, and credit metrics did not materially deteriorate relative to Moody's prior expectations, a Ba1 rating is no longer supportable given the scale of earnings pressure and governance considerations in relation to the accounting error alongside elevated turnover among senior leadership. ESG CONSIDERATIONS Moody's have revisited B&M's Credit Impact Score to CIS-3 from CIS-2 to reflect a moderate increase in ESG-related exposures across environmental, social and governance dimensions. Softer financial performance, senior management turnover and an accounting error that led to an EBITDA revision have heightened governance scrutiny. Although the recently completed EY review resulted in corrective measures, the incident underscored weaknesses in reporting and internal controls. Environmentally, the company faces typical retail sector risks, with carbon-transition pressures arising from transportation and logistics, and some susceptibility to supply-chain disruption and modest physical climate impacts. Social risks are similarly moderate: B&M must manage customer relations, workplace safety and labour-practice oversight across its large store network, while maintaining product quality and customer satisfaction in a value-driven retail model. LIQUIDITY B&M's liquidity is adequate. Moody's assessment reflects: -- GBP168 million cash on balance sheet as of September 27, 2025, which is about as large as Moody's working cash assumption -- Access to a GBP250 million revolving credit facility committed until 2030, which was GBP30 million drawn -- Good compliance with applicable financial covenants -- Absence of source of alternate liquidity STRUCTURAL CONSIDERATIONS The Ba2 rating on the backed senior secured notes, in line with the CFR, reflects the pari passu capital structure and, hence, the shared security and guarantee portfolio with the GBP225 million term loan A and the GBP250 million revolving credit facility (both due 2030). OUTLOOK The stable outlook reflects Moody's expectations that B&M's will successfully deliver on its turnaround plan while abiding by conservative financial policies, so that the resulting credit metrics track in line with Moody's rating guidance. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS FACTORS THAT COULD LEAD TO AN UPGRADE -- Successful execution of the turnaround strategy, leading to sustained like for like revenue growth and margin improvement -- Increased scale -- Moody's adjusted gross debt/EBITDA sustained below 3.0x alongside a balanced financial policy emphasizing reinvestment with limited shareholder distributions -- Strong positive Moody's adjusted free cash flow generation -- Stronger liquidity FACTORS THAT COULD LEAD TO A DOWNGRADE -- Continued subdued operating performance driven by negative like for like sales or sustained profit margin erosion -- More aggressive financial policies, including larger shareholder distributions that weaken free cash flow -- Moody's adjusted leverage rising above 4.0x -- Weaker interest coverage with Moody's-adjusted (EBITDA – CapEx) / interest expense lower than 3.0x -- Weakening liquidity PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Retail and Apparel published in September 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPANY PROFILE UK-based value retailer B&M competes in both the general merchandise and grocery markets. In the 39 weeks to December 27, 2025, it generated revenue of GBP4.5 billion. The company is listed on the London Stock Exchange and had a market capitalisation of around GBP1.8 billion as of February 03, 2026. BLINK PRINT: Forvis Mazars Named as Administrators -------------------------------------------------- Blink Print Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Birmingham, Insolvency and Companies List (ChD), Court Number CR-2026-000033, and Rebecca Jane Dacre and Guy Robert Thomas Hollander of Forvis Mazars LLP were appointed as joint administrators on January 26, 2026. Blink Print Limited engaged in printing. The company's registered office is at Kingsnorth House, Blenheim Way, Birmingham, West Midlands, B44 8LS, United Kingdom. Its principal trading address is Ladywood Works, 3c Leicester Rd, Lutterworth, LE17 4HD. The joint administrators can be reached at: Rebecca Jane Dacre (IP No. 009572) Forvis Mazars LLP The Pinnacle 160 Midsummer Boulevard Milton Keynes, MK9 1FF Guy Robert Thomas Hollander (IP No. 009233) Forvis Mazars LLP 30 Old Bailey London, EC4M 7AU For further details, contact: The Joint Administrators Tel No: 0121 232 9603 Alternative contact: Lottie Atkins HILLIN HOLDINGS: Leonard Curtis Named as Administrators ------------------------------------------------------- Hillin Holdings Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number CR-2026-000121, and Steven Muncaster and Andrew Poxon of Leonard Curtis were appointed as joint administrators on January 27, 2026. Hillin Holdings Limited specialized in other business support service activities not elsewhere classified. The Company's registered office and principal trading address is at King Edward Court, King Edward Road, Knutsford, WA16 0BE. The joint administrators can be reached at: Steven Muncaster (IP No. 9446) Leonard Curtis 3rd Floor, Exchange Station Tithebarn Street Liverpool, L2 2QP Andrew Poxon (IP No. 8620) Leonard Curtis Riverside House Irwell Street Manchester, M3 5EN For further details, contact: The Joint Administrators Tel No: 0161 831 9999 Email: recovery@leonardcurtis.co.uk Alternative contact: Joe Thompson JOLLIFFE-HEPBURN LIMITED: Leonard Curtis Named as Administrators ---------------------------------------------------------------- Jolliffe-Hepburn Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Court Number CR-2026-000121, and Mike Dillon and Andrew Poxon of Leonard Curtis were appointed as joint administrators on January 29, 2026. Jolliffe-Hepburn Limited is a wholesaler of steel products. The company's registered office is at Flat 3 Ingmanthorpe Hall, York Road, Wetherby, England, LS22 5EH. The joint administrators can be reached at: Mike Dillon (IP No. 24610) Andrew Poxon (IP No. 8620) Leonard Curtis Riverside House Irwell Street Manchester, M3 5EN For further details, contact: The Joint Administrators Tel No: 0161 831 9999 Email: recovery@leonardcurtis.co.uk Alternative contact: Amelia Heeds LNC PROPERTY: FRP Advisory Named as Administrators -------------------------------------------------- LNC Property Development Limited, trading as LNC Property Developments, was placed into administration proceedings in the High Court of Justice, Court Number CR-2026-00686, and Rajnesh Mittal and Benjamin Jones of FRP Advisory Trading Limited were appointed as joint administrators on January 30, 2026. LNC Property Development Limited engaged in the development of building projects, construction of domestic buildings, and other building completion and finishing. The company's registered office and principal trading address is at Unit 2 Lindrick Way, Barlborough, Chesterfield, S43 4XE (to be changed to 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD). The joint administrators can be reached at Rajnesh Mittal (IP No. 15674) Benjamin Jones (IP No. 24250) FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham, B3 3BD For further details, contact: The Joint Administrators Tel No: 0121 710 1680 Alternative contact: Abbie Lenihan Email: cp.birmingham@frpadvisory.com MK ASSETS: Griffins Named as Administrators ------------------------------------------- MK Assets Ltd was placed into administration proceedings in the High Court of Justice, Court Number CR-2026-000172, and Stephen Hunt of Griffins was appointed as administrator on January 30, 2026. MK Assets Ltd engaged in the development of building projects. The company's registered office is at Griffins, Suite 011, Unit 2, 94A Wycliffe Road, Northampton, NN1 5JF. Its principal trading address is Exchange House, St. Cross Lane, Newport, Isle Of Wight, PO30 5BZ. The administrator can be reached at: Stephen Hunt (IP No. 9183) Griffins Tavistock House North Tavistock Square London, WC1H 9HR For further details, contact: Jun Wong Email: jun.wong@griffins.net N D B ENGINEERING: Begbies Traynor Named as Administrators ---------------------------------------------------------- N D B Engineering Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Court Number CR-2026-000605, and Robert Ferne and Kirstie Jane Provan of Begbies Traynor (Central) LLP were appointed as joint administrators on January 27, 2026. N D B Engineering Limited engaged in machining. The company's registered office is c/o Begbies Traynor (London) LLP, 31st Floor, 40 Bank Street, Canary Wharf, London, E14 5NR. The joint administrators can be reached at: Robert Ferne (IP No. 29514) Kirstie Jane Provan (IP No. 009681) Begbies Traynor (Central) LLP 31st Floor 40 Bank Street London, E14 5NR For further details, contact: Gabby Whatmore Begbies Traynor (London) LLP Email: Gabby.Whatmore@btguk.com Tel No: 020 7516 1500 ONESPACE GROUP: Leonard Curtis Named as Administrators ------------------------------------------------------ Onespace Group Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number CR-2026-000085, and Steven Muncaster and Andrew Poxon of Leonard Curtis were appointed as joint administrators on January 26, 2026. Onespace Group Ltd engaged in the construction of commercial buildings. The company's registered office and principal trading address is at King Edward Court, King Edward Road, Knutsford, WA16 0BE. The joint administrators can be reached at: Steven Muncaster (IP No. 9446) Leonard Curtis 3rd Floor, Exchange Station Tithebarn Street Liverpool, L2 2QP Andrew Poxon (IP No. 8620) Leonard Curtis Riverside House Irwell Street Manchester, M3 5EN For further details, contact: The Joint Administrators Tel No: 0161 831 9999 Email: recovery@leonardcurtis.co.uk Alternative contact: Joe Thompson SENAPT LIMITED: FTS Recovery Named as Administrators ---------------------------------------------------- Senapt Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies, Court Number CR-2026-000661, and Marco Piacquadio and Rachel Elizabeth Ennis of FTS Recovery Limited were appointed as joint administrators on January 29, 2026. The company's registered office and principal trading address is at Devonshire Business Centre, Aviary Court, Wade Road, Basingstoke, RG24 8PE. The joint administrators can be reached at: Marco Piacquadio (IP No. 19910) Rachel Elizabeth Ennis (IP No. 32172) FTS Recovery Limited Ground Floor, Baird House Seebeck Place, Knowlhill Milton Keynes, MK5 8FR Tel No: 01908 754 666 For further details, contact: Nayem Noor FTS Recovery Limited Tel No: 01908 754 666 Email: nayem.noor@ftsrecovery.co.uk ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2754. 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