260527.mbx

260527.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, May 27, 2026, Vol. 27, No. 105 Headlines A R M E N I A EVOCABANK: Fitch Affirms & Then Withdraws 'B+' IDR A U S T R I A AMS-OSRAM AG: Fitch Alters Outlook on 'B' LongTerm IDR to Positive B U L G A R I A FIBANK: Fitch Rates EUR250MM Sr. Preferred Notes 'B' G E O R G I A GEORGIA: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable I R E L A N D ADAGIO X: Fitch Affirms B-sf Rating on Cl. F-RR Notes BOSPHORUS CLO V: Fitch Lowers Rating on Class F Notes to 'B-sf' FOYT FINANCE: Moody's Assigns (P)Ba1 Rating to Class E Notes NORTH WESTERLY V: Fitch Assigns B-sf Final Rating on Cl. F-RR Notes I T A L Y BRIGNOLE CO 2024: Fitch Affirms 'B+sf' Rating on Class E Notes ESSELUNGA SPA: Moody's Affirms 'Ba1' CFR & Alters Outlook to Stable N E T H E R L A N D S DTEK OIL: Fitch Lowers IDR to 'RD', Then Subsequently Hikes to 'CC' ENSTALL GROUP: Moody's Appends 'LD' Designation to 'Ca-PD' PDR VEON MIDCO: Fitch Gives 'BB-(EXP)' Rating on Sr. Unsecured Notes P O R T U G A L GAMMA STC - TOTTA 4: Fitch Gives B+(EXP) Rating on Class E Notes PELICAN FINANCE 2: Fitch Affirms 'BB+sf' Rating on Class D Notes R U S S I A ALMALYK MINING: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable S P A I N CEMENTOS MOLINS: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable T U R K E Y TURKIYE GARANTI: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable U K R A I N E VF UKRAINE: Fitch Lowers LongTerm IDR to 'CCC-' U N I T E D K I N G D O M BARRETTS OF WOODBRIDGE: BTG Begbies Appointed as Administrators BERRIDGE VENUES: RBW Restructuring Appointed as Administrators CABLE STREET: KR8 Advisory Appointed as Joint Administrators CRG MEDICAL: RSM UK Restructuring Appointed as Administrators DENBY USA: FRP Advisory Appointed as Joint Administrators E-CARAT UK 2026-1: Fitch Assigns BB-sf Final Rating on Cl. F Notes HAWKSMOOR MORTGAGE 2026: Fitch Rates Class F Notes 'B(EXP)sf' HOLMESTERNE FARM: Interpath Advisory Appointed as Administrators HOW NOW: Westcotts Business Appointed as Administrators INSTANT DESPATCH: FRP Advisory Appointed as Joint Administrators NATIONWIDE SELF-STORAGE: Hudson Weir Appointed as Administrator POLARIS 2026-2: Fitch Assigns 'B(EXP)sf' Rating on Class X2 Debt - - - - - ============= A R M E N I A ============= EVOCABANK: Fitch Affirms & Then Withdraws 'B+' IDR -------------------------------------------------- Fitch Ratings has affirmed OJSC Evocabank's (Evoca) Long-Term Issuer Default Ratings (IDRs) at 'B+' with a Stable Outlook and its Viability Rating (VR) at 'b+'. Fitch has simultaneously withdrawn all ratings. Fitch has withdrawn the ratings for commercial reasons. Fitch will no longer provide ratings or analytical coverage of Evoca. Key Rating Drivers Prior to the withdrawal, Evoca's ratings were driven by its intrinsic credit strength, as captured by its VR. The VR reflected the bank's narrow but growing franchise and high loan dollarization, which were counterbalanced by high capital ratios, reasonable profitability and ample liquidity. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Not applicable as the ratings have been withdrawn. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Not applicable as the ratings have been withdrawn. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Prior to withdrawal, the bank's Government Support Rating (GSR) of 'no support' reflected Fitch's view of the Armenian authorities' (BB-/Positive) limited financial flexibility to provide extraordinary support to the bank, given the banking sector's large foreign-currency liabilities relative to the country's international reserves. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Not applicable as the ratings have been withdrawn. VR ADJUSTMENTS The asset quality score of 'b+' was below the 'bb' category implied score due to the following adjustment reason: underwriting standards and growth (negative). The capitalisation and leverage score of 'b+' was below the 'bb' category implied score due to the following adjustment reason: risk profile and business model (negative). 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. Following the withdrawal of the ratings, Fitch will no longer provide the associated ESG Relevance Scores for Evoca. Entity/Debt Rating Prior ----------- ------ ----- OJSC Evocabank LT IDR B+ Affirmed B+ LT IDR WD Withdrawn ST IDR B Affirmed B ST IDR WD Withdrawn Viability b+ Affirmed b+ Viability WD Withdrawn Government Support ns Affirmed ns Government Support WD Withdrawn ============= A U S T R I A ============= AMS-OSRAM AG: Fitch Alters Outlook on 'B' LongTerm IDR to Positive ------------------------------------------------------------------ Fitch Ratings has revised the Outlook on ams-OSRAM AG's Long-Term Issuer Default Rating (IDR) to Positive from Stable. Fitch has also affirmed the IDR at 'B' and the company's senior unsecured instrument rating at 'B' with a Recovery Rating of 'RR4'. Fitch also assigned ams-OSRAM's EUR700 million proposed senior unsecured notes a 'B'/'RR4' rating. The proposed notes are leverage neutral and will be used to refinance outstanding financial debt. The affirmation reflects better EBITDA margins in 2025 than 2024 despite weak market conditions. Fitch expects gross EBITDA leverage and free cash flow (FCF) to improve after using the divestment proceeds towards debt repayment in 2026. The Positive Outlook reflects its expectations of margin improvements through an improved business mix and savings and efficiencies after disposals. This, together with the expected reduction in annual interest expense, will support FCF turning positive by 2028, consolidating the improvement of ams-OSRAM's refinancing risk. Key Rating Drivers Refinancing Strengthens Profile: ams-OSRAM's proposed refinancing should improve its financial profile by extending maturities and lowering interest expense. The company plans to issue EUR700 million of senior unsecured notes due 2032 and use the proceeds, together with cash on hand, to redeem in full its existing USD750 million 12.25% senior notes due 2029. The refinancing is part of a broader deleveraging plan. The proposed transaction will reduce the interest expense and should support an earlier return to a positive FCF margin and stronger cash generation thereafter. Challenges to 2026 Profitability: Profitability improved in 2025, despite a challenging market environment and continued volatility in automotive demand, supported by the company's efficiency measures. The Fitch-calculated EBITDA margin increased to 12.8% from 10%. However, 2026 profitability will be affected by divestment-related effects, including the loss of earnings from disposed businesses, stranded overhead costs and higher precious metal prices. Fitch expects the EBITDA margin to fall to 11.2% in 2026. Margins should then resume rising, supported by new cost-saving initiatives that Fitch expects to deliver EUR200 million of savings by 2028. Fitch expects margins to improve to 14.6% in 2027 on cost savings and pricing actions. Put Option Timing Unclear: A legal dispute is pending between the company and its minority shareholders. The put options owned by minorities on ams-OSRAM shares total EUR495 million. ams-OSRAM remains under the obligation to acquire these shares and pay the guaranteed dividend until the related domination and profit and loss transfer agreement is cancelled. The company indicates the proceedings could settle in 2H26, but the exact timing remains unclear. Fitch expects any cash settlement, if made, to be covered by available cash. Fitch's rating case assumes most of the amount will be repaid in 2026. Asset Sales Support Deleveraging: ams-OSRAM is implementing an accelerated deleveraging plan, including strategic actions to generate EUR710 million of gross proceeds for debt reduction. The company completed the sale of its entertainment and industry lamps business to Ushio Inc. for about EUR100 million in March 2026. It also agreed in February 2026 to sell its non-optical analogue/mixed-signal sensor business to Infineon Technologies AG for EUR570 million, with closing expected in mid-2026. In May 2026, it agreed to sell its CMOS image sensor business to independent company Semiconductor Inc. for EUR40 million, with closing expected by 2026. Peer Analysis ams-OSRAM's closest peers in the diversified industrials sector are BE Semiconductor Industries N.V. (BB+/Stable) and Project Aurora Holdco 1 Limited (B/Positive). Like ams-OSRAM, both have meaningful technology content in their end-products. ams-OSRAM has a stronger medium-term deleveraging path than Project Aurora Holdco 1 and Flender International GmbH (B+/Stable). This is offset by weaker medium-term free cash flow generation. Fitch’s Key Rating-Case Assumptions - Revenue to decrease in 2026 due to divestments, followed by low single-digit increases in 2027-2029 - EBITDA margin to decline in 2026, due to divestments, before rising to around 16% in 2028, driven by enhanced pricing strategies and cost-saving measures - Capex at 7% of revenue a year for 2026-2029 - No common dividend payments to 2029 - Gross divestment proceeds of EUR710 million used for deleveraging - Repayment of 90% of put options in 2026 and the rest in 2027 with cash on balance - Successful refinance of USD750 million senior unsecured notes through the new EUR700 million notes Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb+', Lower), sector characteristics ('b+', Higher), market and competitive positioning ('bb-', Moderate), diversification and asset quality ('bbb-', Moderate), company operational characteristics ('bb+', Moderate), profitability ('ccc+', Higher), financial structure ('ccc+', Moderate), and financial flexibility ('bb+', Moderate). The quantitative financial subfactors are based on standard Corporate Rating Tool financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. 'B+' to 'CC' considerations apply in its analysis and have no impact. The governance assessment of 'good' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'b'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B'. Recovery Analysis Key Recovery Rating Assumptions - The recovery analysis assumes that ams-OSRAM would be considered a going concern (GC) in bankruptcy and that it would be reorganised rather than liquidated. - Its estimated GC value available for creditor claims at about EUR1.3 billion, assuming GC EBITDA of EUR320 million. - Fitch assumes a 10% administrative claim. - Fitch applies an enterprise value (EV) multiple of 5x to GC EBITDA to calculate a post-reorganisation EV. The multiple is based on ams-OSRAM's good market position and geographical diversification, long-term cooperation with customers and sound supplier diversification. However, the EV multiple also reflects a concentration in Automotive. - Fitch deducts about EUR110 million from the EV, due to ams-OSRAM's use of factoring facilities in March 2026, adjusted for a discount, in line with Fitch's criteria. Fitch does not expect these facilities to remain available through restructuring. - Fitch estimates the total amount of senior debt claims at EUR3.3 billion, as of March 2026, after the refinancing of the USD750 million senior unsecured notes. These comprise EUR1 billion of senior unsecured notes, EUR700 million of new notes, an about EUR500 million convertible bond after a EUR192 million partial repayment in January 2026, EUR165 million of bank loans, a EUR800 million revolving credit facility, and EUR83 million of reverse factoring. - The allocation of value in the liability waterfall results in ranked recoveries for the senior unsecured debt of 40%, in line with an 'RR4' Recovery Rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Negative FCF margin throughout the cycle - Failure to deliver savings, leading to gross debt/EBITDA consistently above 6.0x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained neutral to positive FCF - Gross debt/EBITDA below 5.0x - Improved diversification of the customer base Liquidity and Debt Structure Liquidity is supported by Fitch-adjusted cash of about EUR1.2 billion at end-1Q26, after restricting EUR100 million for working capital volatility. As of 31 March 2026, the revolving credit facility had EUR670 million available before the amendment and restatement agreement. Following the amendment, the facility size will fall to EUR600 million from EUR800 million, maturing in September 2028, and can be extended to September 2030, subject to conditions under the facility agreement. The company has sufficient cash to cover the near-term put option obligations and the 2027 convertible bonds. Issuer Profile Austria-based ams-OSRAM designs and manufactures semiconductor sensor and emitter components and high-performance sensor solutions for applications requiring the highest level of miniaturisation, integration, accuracy, sensitivity and less power. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for ams-OSRAM AG. 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 Prior ----------- ------ -------- ----- ams-OSRAM AG LT IDR B Affirmed B senior unsecured LT B New Rating RR4 senior unsecured LT B Affirmed RR4 B =============== B U L G A R I A =============== FIBANK: Fitch Rates EUR250MM Sr. Preferred Notes 'B' ---------------------------------------------------- Fitch Ratings has assigned First Investment Bank AD's (Fibank; B/Positive) EUR250 million senior preferred (SP) notes (ISIN XS3353960902) a final long-term rating of 'B' and Recovery Rating of 'RR4'. The assignment of the final rating follows the completion of the issue and receipt of documents conforming to the information previously received. The final rating is the same as the expected rating assigned on 13 May 2026 (see Fitch Rates Bulgarian Fibank's Upcoming Senior Preferred Notes 'B(EXP)'). The notes mature on 20 May 2031 with an optional redemption date on 20 May 2030 and they carry an initial coupon of 7.375%. The notes are expected to be traded on the Luxembourg Stock Exchange. Key Rating Drivers The final rating is in line with the bank's Long-Term Issuer Default Rating to reflect that the likelihood of default on any given SP obligation is the same as that of the bank. Fitch expects the bank to use SP debt to meet its minimum requirement for own funds and eligible liabilities (MREL) and that the buffer of junior debt instruments would not exceed 10% of Fibank's risk-weighted assets (RWA). The Recovery Rating of 'RR4' reflects its expectation of average recovery prospects. The notes are intended to qualify as eligible liabilities for the purpose of MREL. The bank must comply, on a consolidated level, with an MREL set at 32.6% (including the combined buffer requirement of 8.2%) of RWAs of the resolution group, which excludes its Albanian subsidiary. At end-2025, the buffer was 34.5% of RWAs, comfortably above the requirement. Fibank's ratings balance its reasonable domestic franchise and adequate funding and liquidity against weak asset quality that weighs on its assessment of its profitability and business model and encumbers its capital (see Fitch Revises Fibank's Outlook to Positive; Affirms Rating at 'B' dated 28 April 2026). Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The SP debt rating would be downgraded if the bank's VR is downgraded. The SP debt rating could also be notched down from Fibank's Viability Rating if Fitch believes that recoveries for the bank's SP creditors have weakened and become below-average (RR5) or poor (RR6). Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The SP debt rating could be upgraded if the bank's VR is upgraded. The SP debt could also be upgraded to one notch above the bank's VR if Fitch expects Fibank to use only senior non-preferred (SNP) and more junior debt to meet its MREL or if SNP and more junior debt exceed 10% of the Fibank resolution group's RWAs on a sustained basis. Date of Relevant Committee 22-Apr-2026 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 Prior ----------- ------ -------- ----- First Investment Bank AD Senior preferred LT B New Rating RR4 B(EXP) ============= G E O R G I A ============= GEORGIA: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable -------------------------------------------------------- Fitch Ratings has affirmed Georgia's Long-Term Issuer Default Ratings (IDRs) at 'BB' with Stable Outlooks. The ratings are supported by Georgia's strong economic growth, high level of economic development relative to 'BB' peers, a credible macro-fiscal policy framework moderate public debt and sound banking sector. These are balanced by heightened political tensions, still relatively high financial dollarisation, high exposure of public debt to foreign-currency (FC) risks and weaker external finances than peers, including relatively low external buffers, and high net external debt. Key Rating Drivers Very Strong Growth: The Georgian economy's growth remained strong in 1Q26 following average GDP growth slightly above 8% over 2023-2025. Growth has been primarily driven by information and communication technologies and transport services. Employment growth has been much more subdued, reflecting structural rigidities in the labour market with unemployment at 14% in 2025. From the demand side, GDP growth is well balanced - investments are buoyant, household consumption growth is consistent with increases in real disposable income and net exports are also making a positive contribution. Fitch forecasts a mild deceleration in GDP growth this year to about 6.5% in real terms, but expect it to remain stronger than the median for 'BB' category peers, despite mounting external challenges. Over the medium term, growth could converge towards the government's estimate of 5%. Inflation Shock, Monetary Tightening: Inflation jumped to 5.9% in April 2026, primarily due to the surge in energy prices. In response to the shock, the National Bank of Georgia increased its policy rate by 25bp to 8.25% in early May, signaling further tightening over the next months. Real interest rates are positive, despite higher inflation, reducing depreciation and second-round inflationary risks. Fitch forecasts inflation to remain high over the coming months and decline gradually thereafter towards the 3% target. Elevated Political Polarisation: In Fitch's view, underlying domestic political tensions remain high following the 2024 disputed parliamentary elections, but the intensity of protests has diminished. Georgia is politically polarised with social schisms deepening in recent years, notably following the introduction a 'foreign influence transparency' law in May 2024. The sharp recent deterioration of the World Bank political stability score reflects these trends, with Georgia's WBGI percentile ranking dropping by 6pp. Sound Fiscal Policy: Georgia has consistently delivered strong fiscal performance, underpinned by a transparent and credible fiscal framework. The budget deficit was 1.4% of GDP in 2025, below the 3% limit set in the fiscal rule. The gross general government debt was below 35% of GDP - well below the 52% for the 'BB' median. Its strong economic growth helps with buoyant tax revenue and the government has effective control over expenditure. Moderate Deficits Expected: Fitch forecasts the budget to still have deficits moderately below the 3%-of-GDP fiscal rule threshold in 2026-2027. The conservative growth assumption used for the budget usually leads to significant revenue overperformance. The FC share of government debt is high, but risks are mitigated as most FX debt is from the official sector, mainly multilateral developments bank, is at concessional interest rates and has long maturities. Reduced External Imbalances: The current account deficit (CAD) improved in 2025, as the deficit declined to 2.6% of GDP compared with 5.3% in 2024. However, Fitch believes most of the improvement was due to a temporary surge in exports, driven by sectors like auto, which has no production base in Georgia, and oil products. Fitch expects the CAD to widen to 5% of GDP this year, above the projected 3.4% for the 'BB' median, as export dynamics normalise and import bills increase, reflecting higher energy prices. Improved, Relatively Low Reserve Cover: Gross international reserves increased further to USD6.5 billion in April 2026 from USD5.8billion in November 2025. Appreciation pressures on the Georgian lari in recent months enabled the National Bank of Georgia to conduct FX purchases. Despite the gradual improvement in reserves, the current account payments coverage ratio remains at only three months, well below the peer median. Geopolitical Risks: The Iran war has only a limited direct impact on Georgia, despite its proximity to Iran. Georgia's main energy import source is neighbouring Azerbaijan, with electricity domestically generated, mainly from hydropower. Georgia complies with Western sanctions against Russia. However, its relations with the EU have deteriorated and Fitch does not expect any significant improvement soon, although Georgia formally remains an EU candidate country. Sound Banking Sector: Strong domestic economic conditions continue to support Georgian banks' metrics. The sector is profitable (March 2026: return on equity: 22.8%), with strong capitalisation (core Tier 1 capital ratio: 17%), and stable asset quality (non-performing loans ratio: 2.5%). Deposit dollarisation levels had fallen to 47% in March 2026, down by 7pp from the peak of 54% in February 2025. This is broadly matched by loan dollarisation levels of 42.5%, which are set to fall further owing to tighter reserve requirements and macroprudential measures. Spillovers from the Iran was on Georgia's banking sector, local currency and economic growth have been limited so far. Georgia has an ESG Relevance Score of '5' for Political Stability and Rights, and '5[+]' for the Rule of Law, Institutional and Regulatory Quality, and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model (SRM). Georgia has a medium WBGI ranking at the 54th percentile, reflecting moderate institutional capacity, established rule of law, a moderate level of corruption, and political risks associated with the unresolved conflict with Russia. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - External Finances: A sharp decline in international reserves, for example due to sustained widening of the CAD or sudden, significant capital outflows - Macro/Structural: Substantial worsening of domestic political or geopolitical risks with a large, adverse impact on economic growth or financial stability Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - External Finances: A reduction in external vulnerabilities, for example a sustained narrowing of the CAD or further increase in international reserves or decline in deposit dollarisation, leading to the removal of the -1 notch on External Finances - Macro: Continued strong economic performance without leading to macroeconomic imbalances or financial stability risks Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns Georgia a score equivalent to a rating of 'BB+' on the Long-Term Foreign-Currency (LTFC) IDR scale. Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final LTFC IDR by applying its QO, relative to SRM data and output, as follows: Fitch has removed the -1 notch on structural features to reflect the committee's view that increases in political and geopolitical risks in recent years are now captured in the SRM score through the deterioration in Georgia's WBGI ranking. - External Finances: -1 notch, to reflect Georgia's external vulnerabilities, due to high dollarisation and net external debt, a relatively wide CAD and relatively low external buffers Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LTFC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable or not fully reflected in the SRM. Debt Instruments: Key Rating Drivers Senior Unsecured Debt Equalised: The senior unsecured long-term debt ratings are equalised with the applicable Long-Term IDR, as Fitch assumes recoveries will be 'average' when the sovereign's Long-Term IDR is 'BB-' and above. No Recovery Ratings are assigned at this rating level. Country Ceiling The Country Ceiling for Georgia is 'BBB-', two notches above the LTFC IDR. This reflects strong constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from converting local currency into foreign currency and transferring the proceeds to non-resident creditors to service debt payments. Fitch's Country Ceiling Model produced a starting point uplift of +2 notches above the IDR. Fitch's rating committee did not apply a qualitative adjustment to the model result. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Georgia. ESG Considerations Georgia has an ESG Relevance Score of '5' for Political Stability and Rights as WBGI have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Georgia has a percentile rank below 50 for the respective governance indicator, this has a negative impact on the credit profile. Georgia has an ESG Relevance Score of '5[+]' for Rule of Law, Institutional, Regulatory Quality, and Control of Corruption as WBGI have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Georgia has a percentile rank above 50 for the respective governance indicators, this has a positive impact on the credit profile. Georgia has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the voice and accountability pillar of the WBGI is relevant to the rating and a rating driver. As Georgia has a percentile rank below 50 for the respective governance indicator, this has a negative impact on the credit profile. Georgia has an ESG Relevance Score of '4+' for Creditors Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Georgia, as for all sovereigns. As Georgia has a track record of 20+ years without a restructuring of public debt, as captured in its SRM variable, this has a positive impact on the credit profile. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Georgia LT IDR BB Affirmed BB ST IDR B Affirmed B LC LT IDR BB Affirmed BB LC ST IDR B Affirmed B Country Ceiling BBB- Affirmed BBB- senior unsecured LT BB Affirmed BB sr unsec. Local currency LT BB Affirmed BB ============= I R E L A N D ============= ADAGIO X: Fitch Affirms B-sf Rating on Cl. F-RR Notes ----------------------------------------------------- Fitch Ratings has revised Adagio X EUR CLO DAC's Class F-RR notes Outlook to Negative from Stable. All notes have been affirmed. Entity/Debt Rating Prior ----------- ------ ----- Adagio X EUR CLO DAC Class A-RR XS3083226889 LT AAAsf Affirmed AAAsf Class B-RR XS3083227002 LT AAsf Affirmed AAsf Class C-RR XS3083227424 LT Asf Affirmed Asf Class D-RR XS3083227853 LT BBB-sf Affirmed BBB-sf Class E-RR XS3083227937 LT BB-sf Affirmed BB-sf Class F-RR XS3083228075 LT B-sf Affirmed B-sf Transaction Summary Adagio X EUR CLO 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. The transaction has a target par amount of EUR330 million. The portfolio is actively managed by AXA Investment Managers Inc. The reinvestment period ends in January 2030 and the transaction has a 7.75 year WAL as of April 2026. KEY RATING DRIVERS Performance Deterioration: The transaction has experienced further par losses since its reset in June 2025, representing 0.9% of the par balance. The par losses and a reduction in the portfolio's weighted average spread have eroded the break-even default rate cushion, but a limited margin of safety remains. The revision of the Outlook reflects the reduced protection against new defaults. Fitch calculates that the portfolio has 3.13% of assets rated 'CCC' and 19.5% of assets on Negative Outlook. Sufficient Cushion for Higher-Ranking Notes: The class A-1-RR to E-RR notes have retained sufficient buffers to support their ratings and should be capable of absorbing further defaults and par erosion in the portfolio. This is reflected in their Stable Outlooks. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The weighted average rating factor of the current portfolio is 24.25 as calculated by Fitch under its current criteria. High Recovery Expectations: Senior secured obligations comprise 97.6% 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 of the current portfolio is 61.3%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 11.9%, and the largest obligor represents 1.5% of the portfolio balance. Exposure to the three-largest Fitch-defined industries is 29.3% as calculated by Fitch, with a below average share of the technology software sector at 7.5%. Fixed-rate assets as reported by the trustee are 5.7%, complying with the limit of 12.5%. Limited Refinancing Risk: The transaction has a decreasing near- and medium-term refinancing risk with 17.4% of the remaining portfolio due to mature by end-2028, compared with 32.6% at the last review. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the 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 Adagio X EUR CLO 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. BOSPHORUS CLO V: Fitch Lowers Rating on Class F Notes to 'B-sf' --------------------------------------------------------------- Fitch Ratings has taken multiple rating actions on Bosphorus CLO V DAC including upgrading its class C notes, revising the Outlook on the class E notes and downgrading the class F notes. Entity/Debt Rating Prior ----------- ------ ----- Bosphorus CLO V DAC A-1 XS2073812336 LT AAAsf Affirmed AAAsf A-2 XS2082334249 LT AAAsf Affirmed AAAsf B-1 XS2073813060 LT AAAsf Affirmed AAAsf B-2 XS2073813730 LT AAAsf Affirmed AAAsf C XS2073814381 LT AAsf Upgrade A+sf D XS2073814977 LT BBB+sf Affirmed BBB+sf E XS2073816162 LT BB+sf Affirmed BB+sf F XS2073816329 LT B-sf Downgrade Bsf Transaction Summary Bosphorus CLO V DAC is a cash flow CLO comprising senior secured obligations. The transaction is actively managed by Cross Ocean Adviser LLP and exited its reinvestment period in June 2024. KEY RATING DRIVERS Amortisation Benefits Senior Notes: The class A-1 and A-2 notes have paid down by EUR100 million since the last review in July 2025, while the manager reported aggregated sales of EUR1.1 million. The difference likely reflects prepayments due to the manager not participating in the repricing activity between July 2025 and February 2026. The manager did not report any purchases since September 2024. According to the 31 March 2026 trustee report, no defaults were reported, the deal was passing all over-collateralisation (OC) tests and it was 1.9% below par, resulting from limited par losses since the last review. This has driven the upgrade of the class C notes. Junior Notes Sensitive to Deterioration: Prepayments and sales have increased the share of assets rated 'CCC+' and below to 19.2% from 7.4%. Assets on Negative Outlook account for 36.8% of the current portfolio is on Negative Outlook. Concentration is increasing, with the top 10 obligors at 39.2%. The largest obligor represents 4.8% of the portfolio and exposure to the three largest Fitch-defined industries is 37%, under Fitch's calculations. This supports the downgrade of the class F notes and the Negative Outlook of the class E and F notes. Increasing Refinancing Risk: The Negative Outlooks are also driven by increasing near- and medium-term refinancing risk, with about 45% of the remaining portfolio due to mature in 2028. The weaker credit quality of the remaining portfolio has led Fitch to expect slower prepayments, as re-pricings are less likely and, unless asset values recover, further sales would crystallise trading losses. The market value OC for the class F notes is still positive but much less than the par OC. B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The weighted average rating factor rose to 28.3, as calculated by Fitch under its latest criteria, from 25.3 in the last review. 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 of the current portfolio is 61.8%. Transaction Out of Reinvestment Period: The manager stopped reinvesting in September 2024 due to breaches of some tests, including the weighted average life (WAL) test. The manager's barriers to reinvesting mean Fitch's downgrade analysis is based on the current portfolio, and the upgrade analysis is based on a stressed portfolio in which Fitch has notched down assets on Negative Outlook and floored the WAL at four years. Deviation from Model-Implied Rating: The class C notes are one notch below their model-implied rating (MIR), reflecting a limited cushion against default at MIR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the 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 Bosphorus CLO V DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. FOYT FINANCE: Moody's Assigns (P)Ba1 Rating to Class E Notes ------------------------------------------------------------ Moody's Ratings has assigned provisional ratings to Notes to be issued by Foyt Finance Designated Activity Company: EUR [ ]M Class A Asset Backed Floating Rate Notes due December 2041, Assigned (P)Aaa (sf) EUR [ ]M Class B Asset Backed Floating Rate Notes due December 2041, Assigned (P)Aa3 (sf) EUR [ ]M Class C Asset Backed Floating Rate Notes due December 2041, Assigned (P)Baa1 (sf) EUR [ ]M Class D Asset Backed Floating Rate Notes due December 2041, Assigned (P)Baa3 (sf) EUR [ ]M Class E Asset Backed Floating Rate Notes due December 2041, Assigned (P)Ba1 (sf) EUR [ ]M Class F Asset Backed Floating Rate Notes due December 2041, Assigned (P)Ba2 (sf) Moody's have not assigned ratings to the subordinated EUR [ ]M Class Z Asset Backed Notes due December 2041, the EUR [ ]M Class S1 Instrument due December 2041, the EUR [ ]M Class S2 Instrument due December 2041, the EUR [ ]M Class Y Instruments due December 2041 and the EUR [ ]M VRR Loan due December 2041. RATINGS RATIONALE The Notes are backed by bonds issued by Fondo de Titulización Istria and Fondo de Titulización Trieste, two Spanish private securitisation fund incorporated and managed by Santander de Titulizacion, S.G.F.T., S.A. (NR) ("FT Bonds") which are backed by a static pool of Spanish auto loans originated by Open Bank S.A. (A2(cr)/P-1(cr)). Open Bank S.A. will also act as servicer of the underlying portfolio. The Classes A to Z Notes and the VRR Loan are fully backed by the FT Bonds. The VRR Loan (5% of the underlying portfolio) is a risk retention Note that receives 5% of all available receipts, while the remaining Notes receive 95% of the available receipts on a pari passu basis. As of the February 28, 2026 pool cut-off date, the underlying portfolio contains 28.1M (5.9%) of defaulted assets, but the Notes are sized based on the performing part of the underlying pool. The portfolio of assets backing the FT Bonds amounts to approximately EUR479.99 million in loans as of the pool cut-off date and consists of 37,216 auto finance contracts with a weighted-average seasoning of 2.6 years. The loans were granted for the purchase of new 50.9% and used 48.7% cars. The contracts have equal instalments throughout their life. The transaction benefits from an amortising Liquidity Reserve Fund funded to 1.5% of 100/95 of the Class A Notes balance at closing, and a General Reserve Fund, whose target amount is the minimum of a) 1.5% of 100/95 of Class A Notes minus the Liquidity Reserve Fund and b) 1.5% of 100/95 of Class A, B, C, D, E and F Notes. The Liquidity Reserve Fund will be available to cover shortfalls in the Class A Notes interest, payments on the Class S1 and S2 Instruments and the equivalent interest on the VRR Loan. The General Reserve Fund will provide support to all rated Notes, payments on the Class S1 and S2 Instruments and the equivalent interest on the VRR Loan. The total credit enhancement for the Class A Notes will be 23.97%. The factor 100/95 adjusts the reserve amount to account for the portion of the reserve reserved for the VRR Loan. The Class A Notes do not benefit from this portion of the reserve. The ratings are primarily based on the credit quality of the underlying portfolio, the structural features of the transaction and its legal integrity. According to us, the transaction benefits from various credit strengths such as (i) a granular underlying portfolio of auto loans, (ii) the high average seasoning of 2.6 years, (iii) the additional recoveries coming from assets defaulted at closing and (iv) the 3.3% excess spread at closing. However, Moody's notes that the transaction features a number of credit weaknesses, such as (i) a complex structure including pro-rata principal payments, (ii) the 6.2% exposure to restructured loans and (iii) the fact 12.2% of the loans in the underlying pool are more than 30 days in arrears and 10.9% of the loans have been in more than 30 days in arrears at some point. These characteristics, amongst others, were considered in Moody's analysis and ratings. Moody's determined the portfolio lifetime expected defaults of 10.0% for the performing part of the underlying auto loan portfolio, expected recoveries of 50.0% and portfolio credit enhancement ("PCE") of 23.0% related to borrower receivables. The expected defaults and recoveries capture Moody's expectations of performance considering the current economic outlook, while the PCE captures the loss Moody's expects the underlying portfolio to suffer in the event of a severe recession scenario. Expected defaults and PCE are parameters used by us to calibrate Moody's lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in the ABSROM cash flow model to rate Auto ABS. Portfolio expected defaults of 10.0% for the performing part of the underlying auto loan portfolio are higher than the EMEA Auto ABS average and are based on Moody's assessments of the lifetime expectation for the underlying pool taking into account (i) the fact 12.2% of the loans in the underlying pool is more than 30 days in arrears and 10.9% of the loans have been in more than 30 days in arrears at some point, (ii) the average seasoning of 2.6 years, (iii) the historic performance of originator's previously securitised portfolios, (iv) benchmark transactions, and (v) other qualitative considerations. Portfolio expected recoveries of 50.0% are higher than the EMEA Auto ABS average and are based on Moody's assessments of the lifetime expectation for the underlying pool taking into account (i) the 50.9% exposure to new cars and 59.1% share of registered retention of title, (ii) the historic performance of originator's previously securitised, (iii) benchmark transactions, and (iv) other qualitative considerations. PCE of 23.0% is higher than the EMEA Auto ABS average and is based on Moody's assessments of the underlying pool which is mainly driven by: (i) the fact 12.2% of the loans in the underlying pool is more than 30 days in arrears and 10.9% of the loans have been in more than 30 days in arrears at some point, (ii) the evaluation of the underlying portfolio, complemented by the historical performance information of originator's previously securitized portfolios, (iii) the relative ranking to originator peers in the EMEA auto loan market and (iv) other qualitative considerations. The PCE level of 23.0% results in an implied coefficient of variation ("CoV") of 41.0%. The interest rate mismatch between the fixed-rate underlying portfolio and the floating-rate Notes is hedged by an interest rate swap. Citibank Europe plc (Aa3(cr)/P-1(cr)) is the swap counterparty and will pay the index on the Notes (one-month EURIBOR), while the issuer will pay a fixed swap rate of [ ]% based on a fixed-schedule notional. The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in June 2025. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may cause an upgrade of the ratings of the notes include significantly better than expected performance of the underlying pool together with an increase in credit enhancement of Notes. Factors that would lead to a downgrade of the ratings include: (i) increased counterparty risk leading to potential operational risk of (a) servicing or cash management interruptions and (b) the risk of increased swap linkage due to a downgrade of the interest rate swap counterparty rating; and (ii) economic conditions being worse than forecast resulting in higher arrears and losses. NORTH WESTERLY V: Fitch Assigns B-sf Final Rating on Cl. F-RR Notes ------------------------------------------------------------------- Fitch Ratings has assigned North Westerly V Leveraged Loan Strategies CLO DAC reset notes final ratings. Entity/Debt Rating Prior ----------- ------ ----- North Westerly V Leveraged Loan Strategies CLO DAC A-Loan LT AAAsf New Rating A-R XS2367140121 LT PIFsf Paid In Full AAAsf A-RR XS3328004000 LT AAAsf New Rating B-1-R XS2367140394 LT PIFsf Paid In Full AA+sf B-1-RR XS3328004265 LT AAsf New Rating B-2-R XS2367140634 LT PIFsf Paid In Full AA+sf B-2-RR XS3328004422 LT AAsf New Rating C-R XS2367140717 LT PIFsf Paid In Full A+sf C-RR XS3328004778 LT Asf New Rating D-R XS2367141012 LT PIFsf Paid In Full BBB+sf D-RR XS3328004935 LT BBB-sf New Rating E-R XS2367141285 LT PIFsf Paid In Full BB+sf E-RR XS3328005239 LT BB-sf New Rating F-R XS2367141442 LT PIFsf Paid In Full Bsf F-RR XS3328005312 LT B-sf New Rating X-RR XS3353874228 LT AAAsf New Rating Transaction Summary North Westerly V Leveraged Loan Strategies 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 the subordinated notes, to fund the portfolio with a target par of EUR400 million. The portfolio is actively managed by Aegon Asset Management UK PLC and North Westerly Holding BV, a wholly owned subsidiary of Aegon Asset Management Holding B.V. The CLO has an approximately 4.5-year reinvestment period and an eight-year weighted average life (WAL) at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor of the identified portfolio is 23.6. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 62.3%. Diversified Portfolio (Positive): The transaction has a concentration limit for the 10 largest obligors at 20%. The transaction also includes various other concentration limits, including a maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Test Step-Up Feature (Neutral): The transaction can extend the WAL by six months after the step-up date, which is six months after closing. The WAL extension is subject to conditions, including the satisfaction of collateral quality tests and the collateral principal balance (with defaulted assets at collateral value) being at least equal to the reinvestment target par. Portfolio Management (Neutral): The transaction includes four matrices. Two are effective at closing, corresponding to an eight-year WAL, and two are effective 18 months after closing, corresponding to a seven-year WAL. Each matrix set corresponds to two different fixed-rate asset limits, at 5% and 10%. Switching to the forward matrices is subject to the reinvestment target par condition. The transaction has a reinvestment period of about 4.5 years and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These conditions include passing the coverage tests and the Fitch 'CCC' bucket limitation test after the reinvestment period, as well as a WAL covenant that gradually steps down during and after 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-RR, A-RR and B-RR notes and would lead to a downgrades of one notch each on the class C-RR, D-RR and E-RR notes and to below 'B-sf' for the class F-RR notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of defaults and portfolio deterioration. The class B-RR, C-RR, D-RR and E-RR notes each have rating cushions two notches, and the class F-RR notes have a cushion of one notch, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class X-RR and A-RR notes do not have any rating cushion as they are already at the highest achievable rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to 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, except for the 'AAAsf' notes, may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the 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 North Westerly V Leveraged Loan Strategies CLO DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. ========= I T A L Y ========= BRIGNOLE CO 2024: Fitch Affirms 'B+sf' Rating on Class E Notes -------------------------------------------------------------- Fitch Ratings has affirmed Brignole CO 2024 S.r.l.'s notes. Entity/Debt Rating Prior ----------- ------ ----- Brignole CO 2024 S.r.l. Class A IT0005598351 LT AA+sf Affirmed AA+sf Class B IT0005598369 LT Asf Affirmed Asf Class C IT0005598377 LT BBBsf Affirmed BBBsf Class D IT0005598385 LT BBsf Affirmed BBsf Class E IT0005598393 LT B+sf Affirmed B+sf Transaction Summary Brignole CO 2024 is a static securitisation of Italian personal loans originated by Creditis Servizi Finanziari S.p.A. (Creditis). KEY RATING DRIVERS Defaults Within Expectations; Low Recoveries: Cumulative defaults have been broadly in line with Fitch's expectations. As of the April 2026 payment date, cumulative gross defaults were 1.7% of the original portfolio balance. Recorded cumulative recoveries are lagging behind its expectations at about 4% of cumulative defaults. The portfolio composition is broadly unchanged with 70.9% originated through banking channels and the remaining 29.1% via direct and agent channels. The base case weighted average (WA) default rate for the transaction is at 3.9%. The rating action reflects also the recalibration of its default multiples for intermediate ratings of 'Bsf' to 'AA+sf' following the upgrade of Italy's ratings and, as a result, the revised 'AA+sf' maximum achievable for Italian structured finance deals (see 'Fitch Upgrades 72 Italian SF Tranches on Sovereign Upgrade; Revised 44 tranches to Positive Outlook', dated 16 October 2025). Sequential Switch Softens Pro Rata: The class A to F notes can repay pro rata until a sequential redemption event occurs if, among other events, principal deficiency ledger (PDL) on the portfolio exceeds certain thresholds. Fitch believes in its expected case the switch to sequential amortisation is unlikely given the gap between portfolio performance expectations and defined triggers. The mandatory switch to sequential pay-down when the outstanding collateral balance falls below 10% mitigates tail risk. Payment Interruption Risk Mitigated: The transaction reserve fund reached its EUR1.8 million floor and cannot amortise further. The reserve is available to cover senior fees and interest shortfalls on the class A to E notes and it is replenished in seniority to class A interest payments. Fitch views liquidity coverage provided by the reserve fund as adequate in mitigating payment interruption risk. 'AA+sf' Sovereign Cap: Italian structured finance transactions are capped at six notches above Italy's Issuer Default Rating (IDR, BBB+/Stable/F1), which is the case for the class A notes. The Stable Outlook on these notes reflects that on the sovereign. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The rating of the class A notes is sensitive to changes in Italy's Long-Term IDR. A downgrade of Italy's IDR and a downward revision of the 'AAsf' rating cap for Italian structured finance transactions would trigger a downgrade of the notes. All the notes' ratings are sensitive to the length of the pro-rata period and may face downward rating pressure during a prolonged pro-rata period. In addition, slower recoveries than expected for an extended period can negatively affect ratings; a decrease of 10% in recovery rates would lead to downgrades of up to two notches for all the notes. An unexpected increase in the frequency of defaults or decrease in the recovery rates would produce larger losses than the base case. For example, an increase in the default base case by 25% and a decrease in the recovery base case by 25% would lead to downgrades of up to five notches for all the notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Italy's IDR and an upward revision of the 'AA+sf' rating cap for Italian structured finance transactions could trigger an upgrade of the class A notes, provided sufficient credit enhancement is available to withstand stresses at a higher rating. An unexpected decrease in the frequency of defaults or increase in the recovery rates would produce smaller losses than the base case. For example, a decrease in the default base case by 25% and an increase in the recovery base case by 25% would lead to upgrades of up to two notches for all the notes, except the class A notes. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction's closing, Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Prior to the transaction's closing, Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the rating agency about the asset portfolio. 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 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. ESSELUNGA SPA: Moody's Affirms 'Ba1' CFR & Alters Outlook to Stable ------------------------------------------------------------------- Moody's Ratings has affirmed the Ba1 long-term corporate family rating and the Ba1-PD probability of default rating of Esselunga S.p.A. (Esselunga or the company). Concurrently, Moody's affirmed the Ba1 instrument rating on the EUR500 million senior unsecured bond. The outlook was changed to stable from negative. RATINGS RATIONALE The stabilisation of Esselunga's outlook reflects the company's reported EBITDA recovery in 2025 to EUR725.5 million from EUR570.8 million in 2024. The recovery has been driven by store openings and cost-saving initiatives and also reflects a one-off EUR48 million positive impact related to the loyalty program campaign. This led to a reduction in Moody's-adjusted Debt to EBITDA to 3.6x in 2025 from 4.3x in 2024. Moody's expects further sales growth and cost savings, and limited debt repayments to bring Moody's-adjusted Debt to EBITDA close to 3.5x in the next 12-18 months. The stabilisation of the outlook also reflects the successful refinancing of the capital structure in December 2025 and the company's good liquidity. Esselunga's Ba1 CFR continues to reflect the product offering, primarily focused on food, characterised by low cyclicality and low seasonality; its well-established position as Italy's (Government of Italy, Baa2 stable) fifth-largest grocery retailer and its regional market leadership; its exposure to some of the wealthiest parts of Italy; and Moody's expectations that the company will continue to generate positive free cash flow (FCF). At the same time, the rating is constrained by Esselunga's still elevated leverage, intense competition, which continues to pressure margins, lack of international diversification, resulting in exposure to Italy's economic conditions and demographic trends; its modest size and higher geographical concentration compared with other rated European retailers. LIQUIDITY Esselunga's liquidity is good. As of December 31, 2025, the company had EUR316.5 million of cash and cash equivalents and a EUR500 million revolving credit facility (RCF) fully undrawn and maturing in 2030. Moody's assumes the company will pay approximately EUR50 million in dividends per year in line with its historic track record. Despite dividends, Moody's expects FCF generation to remain positive in 2026, albeit constrained by one-off negative working capital movements, and to increase to around EUR50 million per year from 2027. The good liquidity is also underpinned by the unencumbered real estate assets of the company, comprising stores and logistic centres in Italy, with a book value of EUR3.4 billion in 2025. The next debt maturity is the EUR500 million senior unsecured bond in 2027, which has been pre-financed with a EUR400 million delayed-drawdown facility maturing in 2031. This facility is fully amortising, with cash flow generated by the company, and in line with the company's objective of deleveraging. The remaining financial debt matures in 2030. STRUCTURAL CONSIDERATIONS Esselunga's capital structure includes both bank debt and senior unsecured bond, and as a result, Moody's assumes a 50% family recovery rate, resulting in a PDR of Ba1-PD. The EUR500 million senior unsecured bond are rated Ba1, in line with the CFR, as the vast majority of debt and other obligations are sitting at Esselunga's opco level, and the senior unsecured bond rank pari passu. RATIONALE FOR STABLE OUTLOOK The stable outlook reflects Moody's expectations that Esselunga will continue to generate positive FCF and to grow its EBITDA while gradually repaying debt in the next 12-18 months such that its Moody's-adjusted Debt/EBITDA decreases towards 3.5x. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure would require Moody's-adjusted debt/ EBITDA to reduce sustainably below 3.0x, a track record of positive free cash flow generation while continuing its expansion capital expenditure and maintaining Retained Cash Flow/ Net Debt above 25%. An upgrade would also require a track record of prudent financial policies, including a clear deleveraging target and balanced and predictable shareholder distribution policy. Downward pressure would occur if the Moody's-adjusted EBITDA margin falls below 7%, Moody's-adjusted debt/EBITDA increases above 4.0x, FCF turns negative, or Moody's-adjusted EBIT/interest expense falls below 3x. 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 Esselunga S.p.A. (Esselunga) is a leading food retailer in Italy. In 2025, the company reported revenue of EUR9.5 billion and EBITDA of EUR725.5 million. ===================== N E T H E R L A N D S ===================== DTEK OIL: Fitch Lowers IDR to 'RD', Then Subsequently Hikes to 'CC' ------------------------------------------------------------------- Fitch Ratings has downgraded DTEK OIL & GAS PRODUCTION B.V.'s (DOG) Long-Term Issuer Default Rating (IDR) to 'RD' from 'CC' following the completion of term amendments of the USD275 million notes issued by NGD Holdings B.V. and guaranteed by DOG, which Fitch views as a distressed debt exchange (DDE) under its criteria. Fitch has subsequently upgraded DOG's IDR to 'CC'. Fitch has also downgraded the notes' senior unsecured rating to 'C' with a Recovery Rating of 'RR4' following the DDE and subsequently upgraded it to 'CC'/'RR4'. DOG's IDR reflects uncertainties over its ability to service upcoming bond obligations due to the National Bank of Ukraine's (NBU) moratorium on cross-border foreign-currency (FC) payments. It also reflects DOG's high operational risks from its Ukraine operations, weak liquidity and a currency mismatch between its US dollar-denominated Eurobond obligations and Ukrainian hryvnia-denominated domestic sales. Fitch expects EBITDA gross leverage to remain below 1.5x in 2026, supported by higher gas prices. Key Rating Drivers Notes Amendment Completed: Fitch views the completion of the consent solicitation and the amendment of the terms of the USD275 million bonds as a DDE under its Corporate Rating Criteria. Fitch considers the three-year maturity extension to 31 December 2029 to be a material reduction in terms, while the restructuring allows the issuer to avoid an eventual probable default, considering the NBU's moratorium on cross-border FC payments and high operational risks. The amended bond terms became effective on 7 May 2026. Liquidity Constraint Remains: Fitch believes DOG's liquidity risk is still high, as its underlying liquidity constraints remains. The moratorium on cross-border FC payments has restricted DOG's ability to make payments abroad. Together with the absence of offshore cash generation and lack of access to external financing, this has further reduced DOG's payment flexibility. Under the amended terms, DOG is required to make semi-annual amortisation payments of USD27.5 million, compared with annual amortisation of USD50 million under the original structure. Moratorium on FC Payments: DOG has not received an exemption from the FC transfer moratorium since obtaining a one-off permit for its 1H22 coupon. Without such approval, DOG has limited capacity to transfer cash held in Ukraine abroad to pay its international noteholders. The NBU relaxed the moratorium on cross-border FC payments in 2024 and 2026, allowing companies to purchase FC and send cash abroad to service interest payment of external debt, where principal repayment is allowed under certain conditions. Operations Continue Amid Disruptions: DOG's operations were disrupted in 2025 by war-related damage, which led to temporary suspensions and lower output. Fitch expects restoration works to be completed in 1H26. Fitch forecasts production of about 10.9 thousand barrels of oil equivalent per day (kboepd) in 2026, resulting in EBITDA of about EUR177 million under Fitch's gas price assumption. The higher EBITDA forecast relative to its expectation in April 2026 of EUR140 million is driven by a higher 2026 gas price assumption. Complex Group Structure: DOG is part of a larger group, DTEK GROUP B.V., which is a privately owned energy group in Ukraine whose main subsidiaries include DTEK Energy B.V. (CCC-), DTEK Renewables B.V. (CC), D. Trading B.V. and other companies. DTEK GROUP B.V. is ultimately owned by SCM. Fitch rates DOG on a standalone basis and assess SCM's incentive to support DOG as weak. Related-Party Transactions Reduce Visibility: Support from affiliated companies has enabled DOG to make its Eurobond payments, but significant related-party transactions and working-capital volatility make its cash flow profile less predictable. DOG sells gas domestically through an affiliated trader, and its working-capital movements have been materially negative since 2021. Fitch expects this to continue in 2026. Peer Analysis Ratings in the 'CCC' category and below for most Ukraine-based corporate issuers reflect heightened operational and financial risks. Interpipe Holdings plc's 'CCC-' ratings reflect the high risk of damage to, or disruption at, its main facilities as well as its constrained liquidity profile. DOG's affiliated company, DTEK Renewables B.V. (CC), faces similarly tight liquidity and high operational risks. Another affiliated company, DTEK Energy B.V., is rated 'CCC-', reflecting Fitch's view that the company no longer faces an imminent risk of default following several bond repurchases below par and a stabilisation in business operations. Fitch's Key Rating-Case Assumptions - Gas price assumption in line with Fitch's price deck - Natural gas production averaging 11 kboepd in 2026-2028 - Capex increasing to UAH1.5 billion in 2026, then declining to an average of UAH1 billion a year in 2027 and 2028 - No dividends paid to ordinary shareholders in 2026-2028 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): management ('bb', Moderate), sector characteristics ('b+', Lower), market and competitive positioning ('b-', Moderate), diversification and asset quality ('ccc+', Moderate), company operational characteristics ('b-', Moderate), profitability ('ccc', Moderate), financial structure ('a+', Lower), and financial flexibility ('ccc-', Higher). - The quantitative financial subfactors are based on custom CRT financial period parameters: 80% weight for the forecast year 2026 and 20% for the forecast year 2027. - B+ to CC considerations apply in its analysis and results in an adjustment of -2 notch(es). - The Governance assessment of 'Some Deficiencies' has no impact. - The Operating Environment assessment of 'ccc' has no impact. - The SCP is 'cc'. To derive the Long-Term IDR: - Application of Fitch's Parent and Subsidiary Linkage Rating Criteria results in a(n) standalone approach. Recovery Analysis - The recovery analysis assumes that DOG would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. - The GC EBITDA of UAH3 billion reflects Fitch's view of a sustainable, post-reorganisation EBITDA level based on normalised domestic prices and potentially lower production. - Fitch uses an enterprise value/EBITDA multiple of 3x to calculate a post-reorganisation valuation, reflecting high operational risks due to the company's focus on Ukraine. - Fitch assumes that the senior unsecured Eurobond ranks equally with the company's deferred consideration for the acquisition of PrJSC Naftogazvydobuvannya. Fitch considers the collateral to be weak, therefore Fitch views the notes to be senior unsecured. - After deducting 10% for administrative claims and taking into account Fitch's Country-Specific Treatment of Recovery Ratings Criteria, its analysis generated a waterfall-generated recovery computation in the 'RR4' band, indicating a 'CC' rating for the senior unsecured notes. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Evidence that a default or default-like process has begun, including DOG entering a grace or cure period following non-payment of a material financial obligation - An uncured payment default or a DDE could lead to a downgrade to 'RD' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - An upgrade is unlikely at present unless DOG experiences reduced operational risks, improved liquidity and better access to external financing, along with relaxation of the restrictions on cross-border FC payments, on a consistent basis Liquidity and Debt Structure Under the amended terms of the 2029 notes, DOG is required to make to semi-annual amortisation payments of USD27.5 million through maturity, compared with annual payments of USD50 million under the previous terms. The first amortisation payment was made in May 2026, and the next scheduled debt service will be a USD27.5 million amortisation payment plus the related coupon in December 2026. DOG's free cash flow generation remains materially reliant on related-party transactions. In addition, its ability to deploy internally generated cash towards debt repayment is constrained by existing restrictions on FC payments. Issuer Profile DOG is a privately owned natural gas producer in Ukraine ultimately controlled by Rinat Akhmetov's SCM Capital. In 2025, it produced about 660 million cubic metres of gas. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The Climate.VS for DOG is 53 for 2035. It reflects transition risks for oil and gas production arising from potential reductions in demand driven by policies designed to reduce consumption, and, in the shorter term, from policies designed to limit greenhouse gas emissions from hydrocarbon production. Energy transition risk is not an immediate downside risk to the rating, given the long-term horizon of the transition as well as uncertainty regarding the pace and form of the regulatory and market dynamics that will govern it. Fitch believes that, given the current situation, management will focus mainly on DOG's operational and financial performance rather than on climate-related initiatives. ESG Considerations DOG has an ESG Relevance Score of '4' for Group Structure due to a large number of complex related-party transactions and a complex group structure, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. DOG has an ESG Relevance Score of '4' for Governance Structure due to the influence of the key shareholder, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- NGD Holdings B.V. senior unsecured LT C Downgrade RR4 CC senior unsecured LT CC Upgrade RR4 DTEK OIL & GAS PRODUCTION B.V. LT IDR RD Downgrade CC LT IDR CC Upgrade ENSTALL GROUP: Moody's Appends 'LD' Designation to 'Ca-PD' PDR -------------------------------------------------------------- Moody's Ratings appended a Limited Default (LD) designation to Enstall Group B.V.'s (Enstall) Probability of Default Rating, changing it to Ca-PD/LD from Ca-PD, following a missed interest payment. Enstall did not pay the interest due in March 2026 on its $375 million backed senior secured first lien term loan maturing in August 2028. The missed interest payment was not cured during the original applicable grace period, which was later extended. Enstall is in advanced discussions with lenders on a debt restructuring transaction. On April 19, 2026, Enstall signed a recapitalization support agreement with the majority of its lenders, which includes deferring the due date of all interest payments until the restructuring is finalized. The LD designation will remain until finalization of a restructuring agreement, which will resolve the missed interest payment. Enstall designs, develops and distributes solar mounting solutions in Europe and the United States, for rooftop residential, commercial and industrial markets, and increasingly for ground-mounted applications. The company is owned by private equity firms Rivean Capital (formerly Gilde Buy Out Partners) and Blackstone, which each hold significant stakes, alongside minority shareholders including Enstall's management, Avenue Capital Group and Robus Capital Management. VEON MIDCO: Fitch Gives 'BB-(EXP)' Rating on Sr. Unsecured Notes ---------------------------------------------------------------- Fitch Ratings has published VEON Midco B.V.'s prospective senior unsecured notes an expected rating of 'BB-(EXP)' with a Recovery Rating of 'RR4', in line with Veon Ltd.'s (VEON) Long-Term Issuer Default Rating (IDR) of 'BB-'. Fitch expects VEON to issue two senior unsecured notes to fund the buy-back of up to USD750 million of the company's USD1 billion unsecured notes. Any additional funds raised may be used to repay other debt, in whole or in part, to support balance sheet liquidity, and to cover transaction expenses and accrued interest. VEON's rating benefits from a diversified revenue base, strong operating positions in key markets and Fitch-defined EBITDA net leverage, which provides sufficient headroom despite potentially challenging operating environments and foreign-exchange risks. However, the company's free cash profile in the short to medium term is weak for a 'BB-' rating. Fitch expects net leverage to remain below 2.0x in 2026-2029, but this is offset by weak Fitch-defined cashflow from operations (CFO) less capex/debt and Fitch-defined interest coverage. Key Rating Drivers Refinancing Rating Neutral: The unsecured notes will be issued by VEON Midco B.V., ranking equally to existing debt and be structured with a five- and seven-year maturity. The refinancing will fund an initial tender up to USD750 million of VEON's USD1 billion 3.375% unsecured notes. Fitch expects additional funds raised to be kept on the balance sheet to address remaining debt maturing in 2027. The guarantee and covenants will remain consistent with the existing terms. Fitch expects the new issuance to carry higher base interest rates, reducing interest coverage to around 4.0x subject to the final issuance amounts. The rating will become final if the transaction closes on terms not materially different from those expected by Fitch. Leverage Headroom: Fitch forecasts Fitch-defined net leverage below 2.0x (excluding Ukraine) in 2026-2029, supported by mid-30% EBITDA margins and VEON's market-leading positions in Pakistan and Kazakhstan. VEON manages a currency mismatch between predominantly local-currency cash flow and foreign-currency debt, while a Fitch-estimated 50%-70% of capex is denominated in hard currency. However, around 50% of debt is in local currency, providing leverage stability by hedging against adverse foreign-exchange (FX) movements. Weak Cash Flow: Fitch forecasts CFO less capex/debt to trend to 3% in 2029, below its 5.5% downgrade threshold. Cash flow is affected by high cash interest, FX risks, cyclical investment capex, including spectrum costs, and cash taxes in Pakistan and Bangladesh, with Pakistan a material contributor to group profitability. There is scope for this metric to improve over the medium term through a combination of EBITDA growth and gradual reduction in capex and associated funding requirements. Fitch believes it is critical for VEON to generate stable operating cash generation to build headroom to maintain sufficient organic liquidity to absorb unforeseen operating and financial risks. High Capex, Gradual Decline: VEON has invested heavily in 4G rollout and digital infrastructure, with Fitch-defined cash capex intensity, including spectrum payments, at 17% in 2026 and 18% in 2027, reflecting the new Pakistan spectrum acquisition (190 MHz in March 2026). 4G coverage is now above 90% outside Pakistan and above 70% in Pakistan, while VEON has opted for 4.9G rather than 5G in Kazakhstan. Fitch expects capex intensity to trend to 16% in 2029 as capex moderates following recent tower sales, the completion of network investments and limited demand for 5G. Any further material reductions will be contingent on capex-intensive asset sales. Digital Services, Multi-Play: VEON's digital revenue increased by 42% in 2025, accounting for 20% of total revenue, excluding Ukraine. Rising data usage and improving socio-economic conditions, supported by lower customer acquisition and distribution costs, allow VEON to compete in underserved markets and segments. Multi-play services attract higher average revenue per user, stronger retention and greater upselling and cross-selling opportunities. In Pakistan, digital revenue was over 30% of total revenue, with financial services contributing significantly. Fitch expects double-digit growth rates in this segment as it scales, but at a lower EBITDA margin, which was 27% in 2025. Business Mix Shift: Telecom services generated 80% of revenue and 90% of EBITDA in 2025, but VEON aims to become a more asset-light digital services company. Fitch believes this will support its competitive position while offering new revenue streams. However, a higher proportion of earnings from volatile segments, such as lifestyle applications, entertainment and financial services, introduces risks relative to cash flow from telecom operations. Fitch has revised VEON's leverage sensitivity to 2.5x-3.5x from 4.0x and its CFO less capex/debt to 5.5%-7.5% from 5% to reflect VEON's evolving business mix and operating environments, and to better align with peers. Operating-Environment Risks: Fitch assesses the applicable Country Ceiling as Kazakhstan (BBB+). EBITDA from Kazakhstan is sufficient to cover gross interest payments at current leverage. However, VEON operates in countries with a weighted-average operating environment of 'b+', excluding Ukraine. Fitch considers the ratings of corporates operating in such markets to be constrained by factors such as fragile economic structures and uncertain governance and regulation, even in the absence of transfer and convertibility risks. Diversified Asset Portfolio: VEON's operations in Pakistan, Kazakhstan (pro forma TNS+ disposal) and Uzbekistan delivered double-digit revenue growth in 2025, while revenue in Bangladesh declined by 12%, although customer losses slowed in the last two quarters. VEON is a leader in Pakistan and Kazakhstan, which are markets with fewer competitors or dominant players. It is also a leader in Uzbekistan, although the market is highly competitive with up to five mobile network operators. By contrast, VEON ranks third in Bangladesh, a four-operator market. VEON's geographic diversification allows strong performance in some markets to mitigate operating pressures in others. Peer Analysis Axian Telecom Holding and Management plc (B+/Stable), Africell Global Holdings Ltd (B-/Stable) and Liquid Telecommunications Holdings Limited (B-/Stable) are peers that operate in countries with weak operating environments. VEON has greater financial flexibility than these companies at its rating level, reflecting its scale and stronger operating profile with well-established or leading market positions and moderately better operating environments. Airtel Africa (Parent: Bharti Airtel Limited; BBB-/Stable) benefits from materially larger scale and geographic diversification. Bhati's Standalone Credit Profile (SCP) is capped by India's Country Ceiling Rating of 'BBB-'. VEON's ratings reflect the negative impact of its weaker operating environment mix, which constrains its debt capacity for a given rating relative to operators such as NJJ Continental Holding S.A. (Salt; BB-/Stable) and VodafoneZiggo Group B.V. (B+/Stable) in developed European markets. Fitch’s Key Rating-Case Assumptions Its assumptions are based on VEON excluding operations in Ukraine. - Mid-single-digit reported US dollar revenue growth across the portfolio to 2029. Revenue growth to be driven by pricing, 4G penetration, data usage and digital services, offset by FX risks and competitive pressures. - Fitch-defined EBITDA margins (including lease costs) falling to 33% from 35% in 2026-2029, with growth in digital revenue diluting EBITDA margins. - Capex (including spectrum costs) at USD600 million-700 million a year in 2026-2029. New spectrum acquired in Pakistan for the equivalent of USD239.5 million in Pakistani rupees in March 2026 to be 50% paid in 2027 and the remaining portion paid in equal instalments. - Non-recurring cash outflows of USD120 million in 2026 reflects the upfront portion of the settlement with the Dhabi Group. - No dividends in 2026-2029. - Net M&A inflows of USD150 million in 2026 and USD20 million in 2027. - Net equity inflow of USD140 million in 2026 from the sale of shares in Kyivstar Holdings B.V. - Share buy-backs of USD100 million a year in 2026-2029. - Buy-back of USD750 million of USD1 billion senior unsecured notes. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the SCP (excluding Ukraine): - Business and financial profile factors (assessment, relative importance): management (bbb-, lower), sector characteristics (bb+, moderate), market and competitive positioning (bbb-, higher), diversification and asset quality (bbb, lower), company operational characteristics (bbb-, moderate), profitability (bb+, lower), financial structure (bb-, higher), and financial flexibility (bb-, moderate). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, and 40% for the forecast years 2026 and 2027. - The governance assessment of 'good' results in no adjustment. - The operating environment assessment of 'b+' results in an adjustment of -1 notch. - The SCP is 'bb-'. Recovery Analysis VEON's senior unsecured expected rating of 'BB-(EXP)' is in accordance with its Corporates Recovery Ratings and Instrument Ratings Criteria, under which it applies a generic approach to instrument notching for 'BB' rated issuers, resulting in a Recovery Rating of 'RR4', aligned with the IDR. The Recovery Rating is also capped at 'RR4' in accordance with its Country-Specific Treatment of Recovery Ratings Rating Criteria in which Pakistan, Kazakhstan, Bangladesh and Uzbekistan are in Group D. RATING SENSITIVITIES Rating Sensitivities exclude the contribution from Ukrainian operations. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - CFO less capex/total debt consistently below 5.5%, outside of peak capex cycles, combined with lower visibility on cash flow circulation across key subsidiaries leading to weaker liquidity. - EBITDA net leverage sustained above 3.5x. - A significant change in business mix leading to higher volatility in Fitch-defined free cash flow. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An improvement in the operating environment of the countries in which VEON operates, or a favourable change in the geographical mix of cash flow, together with continued strong market positions in its countries of operation. - An improved cash flow profile, with clear visibility of CFO less capex/total debt above 7.5%. - The maintenance of a conservative capital-allocation policy and leverage profile with EBITDA net leverage sustained below 2.5x. - EBITDA interest coverage consistently above 6x. Liquidity and Debt Structure VEON's cash at end-December 2025 was around USD1 billion, excluding cash in Ukraine and cash related to banking operations in Pakistan, with USD556 million held at the holding company. VEON no longer has a revolving credit facility, having repaid and cancelled it during 2024, limiting access to additional committed liquidity. However, Fitch believes a combination of holding company cash, lower holding company debt and expected dividends from operating companies should cover holding company interest and operating costs. In 2025, VEON was able to upstream USD323 million from its operating companies after withholding tax. Depending on the final issuance amounts, Fitch forecasts that VEON will retain balance sheet cash at least above USD800 million in 2026-2029, with no material restrictions extracting cash from operating companies, excluding Ukraine. VEON's next debt maturities will be in 2027, reflecting any remaining debt not refinanced. Fitch expects the company to address any remaining maturities. The new issuance will have a maturity of 2031 and 2033 years. Fitch believes the company has sufficient liquidity to absorb higher interest rates on refinancing. Issuer Profile VEON is a mobile network operator and provider of digital and financial services, with leading or well-established market positions in Pakistan, Ukraine, Kazakhstan, Bangladesh and Uzbekistan. Date of Relevant Committee May 7, 2026 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for VEON. 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 ----------- ------ -------- Veon Midco B.V. senior unsecured LT BB-(EXP) Publish RR4 =============== P O R T U G A L =============== GAMMA STC - TOTTA 4: Fitch Gives B+(EXP) Rating on Class E Notes ---------------------------------------------------------------- Fitch Ratings has assigned Gamma, STC S.A. /Consumer Totta 4 expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to information already received. Entity/Debt Rating ----------- ------ Gamma, STC S.A. / Consumer Totta 4 Class A LT AA(EXP)sf Expected Rating Class B LT A-(EXP)sf Expected Rating Class C LT BBB(EXP)sf Expected Rating Class D LT BB(EXP)sf Expected Rating Class E LT B+(EXP)sf Expected Rating Class F LT BB+(EXP)sf Expected Rating Transaction Summary The transaction is a six-month revolving securitisation of a fully amortising unsecured consumer loans portfolio originated in Portugal by Banco Santander Totta S.A. (Totta; A+/Stable/F1). Totta is owned by Banco Santander, S.A. (A+/Stable/F1). KEY RATING DRIVERS Asset Assumptions: Fitch has calibrated a base-case default rate of 7% for the portfolio, lower than the 7.5% applied in the previous transaction Consumer Totta 3 in October 2025. This reflects recent improvement in portfolio performance, supported by favourable macroeconomic conditions and the originator's strengthened risk policies. The base case recovery rate has been recalibrated to 25%, from 35% in Consumer Totta 3, reflecting Fitch's updated analysis of historical recovery data, and underlining lower recoveries on defaulted receivables. Revolving and Pre-funding Period: The transaction features a six-month revolving and pre-funding period during which additional receivables can be purchased by the issuer in an amount that could represent up to 30% of the initial portfolio balance, assuming a 10% prepayment rate. Fitch considers any associated credit risk as captured by the default multiples and the portfolio eligibility criteria contractually defined. At closing, the issuer will use the note proceeds to purchase a maximum 80% of the portfolio balance with the remaining 20% held in cash at the transaction account bank (TAB, the pre-funding amount) for purchasing additional assets. Any unapplied pre-funding amounts will be used to amortise the class A to E notes pro rata after the end of the revolving period. Pro Rata Note Amortisation: The class A to E notes will amortise pro rata from the first quarterly interest payment date (IPD) after the end of the revolving period until the occurrence of a switch-to-sequential amortisation event. Fitch considers such an event as unlikely during the first years after closing under the base case, given its portfolio performance expectations versus the defined triggers. Fitch believes the tail risk posed by the pro rata pay-down is mitigated by the mandatory switch to sequential amortisation when the pool balance falls below 10% of the initial balance. Interest Rate Risk Mitigated: Hedging in the form of a fixed-to-floating interest rate swap is included to address the mismatch between the floating-rate liabilities and the predominantly fixed-rate assets (98.9% of the portfolio). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Long-term asset performance deterioration such as increased defaults and delinquencies or reduced portfolio yield, which could be driven by changes in portfolio characteristics, macroeconomic conditions, business practices or legislation could be negative for the ratings Sensitivities to higher default rates and lower recoveries are shown below: Expected impact on the notes' ratings of increased defaults (class A/B/C/D/E/F) Increase default rates by 10%: 'AA-sf'/'BBB+sf'/'BBB-sf'/'BB-sf'/'Bsf'/'BB+sf'' Increase default rates by 25%: 'Asf'/'BBBsf'/'BB+sf'/'Bsf'/'CCCsf'/'BB+sf'' Increase default rates by 50%: 'A-sf'/'BB+sf'/'BBsf'/'CCCsf'/'NRsf'/'BB+sf'' Expected impact on the notes' ratings of reduced recoveries (class A/B/C/D/E/F) Reduce recovery rates by 10%: 'AA-sf'/'BBB+sf'/'BBB-sf'/'BBsf'/'B+sf'/'BB+sf'' Reduce recovery rates by 25%: 'A+sf'/'BBBsf'/'BBB-sf'/'BBsf'/'Bsf'/'BB+sf'' Reduce recovery rates by 50%: 'A+sf'/'BBBsf'/'BB+sf'/'B+sf'/'CCCsf'/'BB+sf'' Expected impact on the notes' ratings of increased defaults and reduced recoveries (class A/B/C/D/E/F) Increase default rates by 10% and reduce recovery rates by 10%: 'A+sf'/'BBBsf'/'BBB-sf'/'BB-sf'/'B-sf'/'BB+sf'' Increase default rates by 25% and reduce recovery rates by 25%: 'Asf'/'BBB-sf'/'BBsf'/'B-sf'/'NRsf'/'BB+sf'' Increase default rates by 50% and reduce recovery rates by 50%: 'BBBsf'/'BBsf'/'Bsf'/'NRsf'/'NRsf'/'BB+sf'' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Better asset performance than expected, such as lower defaults and higher recoveries would be positive for the ratings. Increasing credit enhancement ratios as the transaction deleverages to fully compensate the credit losses and cash flow stresses commensurate with higher ratings would also lead to positive rating actions. Reducing default rates by 10% and increasing recovery rates by 10% would result in ratings of 'AAsf'/'Asf'/'BBB+sf'/'BB+sf'/'BBsf'/'BB+sf' for the class A, B, C, D, E and F notes, respectively. 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 sought to receive a third-party assessment conducted on the asset portfolio information, but none was available for this transaction. 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 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. PELICAN FINANCE 2: Fitch Affirms 'BB+sf' Rating on Class D Notes ---------------------------------------------------------------- Fitch Ratings has upgraded Ares Lusitani - STC, S.A. / Pelican Finance No. 2's class A to C notes and affirmed the class D notes, as detailed below. All Outlooks are Stable. Entity/Debt Rating Prior ----------- ------ ----- Ares Lusitani - STC, S.A./ Pelican Finance No. 2 A PTLSNTOM0007 LT AA+sf Upgrade AAsf B PTLSNUOM0004 LT AA+sf Upgrade Asf C PTLSNVOM0003 LT A+sf Upgrade BBB+sf D PTLSNWOM0002 LT BB+sf Affirmed BB+sf Transaction Summary The transaction is a static securitisation of unsecured consumer and auto loans originated in Portugal by Caixa Económica Montepio Geral, Caixa Economica Bancaria, S.A. (BBB-/Stable) and Montepio Crédito (part of the Montepio group). The transaction closed in December 2021, and the current outstanding portfolio balance was 17.6% as of April 2026 of the initial portfolio balance. KEY RATING DRIVERS Updated Asset Assumptions: Fitch has recalibrated the base-case default and recovery assumptions to 3% and 40% from 5% and 35%, respectively, driven by the transaction's performance to date and expected performance, Portugal's economic outlook, and the originator's underwriting and servicing strategies. All other assumptions are unchanged. Under the resulting 'AA+sf' rating case commensurate with the class A and B notes' ratings, the updated portfolio's remaining life loss rate is 9.8%. The rating actions reflect the better performance expected over the remaining life of the transaction. Solid Performance: While Fitch has changed its asset performance outlook for the European ABS sector to deteriorating from neutral, reflecting its expectation that the weakening in recent quarters will persist to end-2026, the key performance indicators for Pelican 2 remain solid. Gross cumulative defaults in relation to the initial pool balance were low at 2.3% as of the latest reporting date in April 2026, and loans in early-stage arrears (below 90+ days past due) were slightly above 4% of the current portfolio balance. Defaults are defined as loans more than 90 days in arrears. CE Build-up to Accelerate: Fitch expects Pelican 2's class A to E notes to begin amortising sequentially in coming interest payment dates (IPDs), as the current portfolio balance is currently below 18% of the balance at closing, and is expected to go below the 10% trigger for a mandatory sequential amortisation. Fitch expects credit enhancement (CE) to increase once sequential amortisation occurs, further supported by a liquidity reserve that remains at its floor. Counterparty Arrangements: The maximum achievable rating for the transaction remains 'AA+sf', in line with Fitch's counterparty criteria. This is due to the minimum eligibility rating thresholds defined for the transaction account bank (TAB) and the interest rate cap provider of 'A-' or 'F1', which are insufficient to support 'AAAsf' ratings. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Long-term asset performance deterioration, such as increased delinquencies or reduced portfolio yield, which could be driven by changes in portfolio characteristics, macroeconomic conditions, business practices or the legislative landscape. For instance, a 25% increase in defaults and a 25% decrease in recoveries may lead to multi-notch downgrades - Changes to the eligibility thresholds defined for the TAB and the interest rate cap provider that are not compatible with 'AA+sf' ratings Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - For the class C to D notes, increasing CE ratios as the transaction deleverages to fully compensate the credit losses and cash flow stresses commensurate with higher ratings. For instance, a 25% decrease in defaults and a 25% increase in recoveries may lead to multi-notch upgrades - For the class A and B notes, modified counterparty minimum eligibility ratings compatible with 'AAAsf' ratings USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction closing, Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Prior to the transaction closing, Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the rating agency about the asset portfolio. 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 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. =========== R U S S I A =========== ALMALYK MINING: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Uzbekistan-based JSC Almalyk Mining and Metallurgical Complex's Long-Term Issuer Default Rating (IDR) at 'BB' with a Stable Outlook. This underlines the strong ties between the company and the state under Fitch's Government-Related Entities (GRE) Rating Criteria. Almalyk's Standalone Credit Profile (SCP) is 'b+', reflecting execution and financial risks linked to its greenfield Yoshlik mine's development with large debt-funded capex, negative free cash flow (FCF), increasing leverage and tight liquidity, in addition to concentration of operations in one country with a weak operating environment. Rating strengths are its expanding scale of operations, decreasing reliance on a single mine with the start of the Yoshlik project, commodity diversification into copper, gold, zinc and silver, favourable cost position and a long reserve life. Key Rating Drivers Responsibility to Support: Fitch views the decision making and oversight by the state as 'Strong', as Almalyk is 98.7%-owned by the state, despite the plans for a minority stake sale via an initial public offering. The state has tight control over the company, overseeing operating activity, the budget and investments. Fitch assesses precedents of support as 'Strong', underpinned by government loans totalling USD1 billion provided between 2020-2024 and converted into equity in 2024. The state now guarantees 16% of Almalyk's total debt and will not provide guarantees for new loans, but Fitch believes support would remain strong in the event of cost overruns or commodity price downturns. Incentives to Support: Fitch assesses the preservation of government policy role as 'Strong' as Almalyk produces all of Uzbekistan's copper and about 60% of current volumes are consumed domestically. Almalyk is also the second-largest taxpayer, the second-largest exporter and one of the major employers in Uzbekistan. Fitch assesses contagion risk as 'Strong', as Almalyk is increasing its use of external funding for the Yoshlik project. In its view, a default of Almalyk could affect the ability of Uzbekistan and other GREs to borrow on international markets. Yoshlik Expands Scale: Yoshlik is a transformative copper, gold and silver project that will double Almalyk's production scale by 2029 and improve asset diversification. The project's total capex is about USD12.6 billion. It will increase Almalyk's copper production capacity from the current 148kt to 300kt (thousand tonnes) a year by 2029 (Stage 1) and further 500kt a year by 2031 (Stage 2). Gold production will increase to 900koz by 2030 from about 630koz in 2025. Yoshlik Stage-1: About USD4.3 billion out of the USD7.3 billion allocated for the first phase of Yoshlik was used to finance the mine development, the third copper processing plant (concentrator) and the initial work of smelter construction. The rest will be spent for the concentrator ramp-up which is planned to fully commission in 2H26, and the construction of the smelter and lime plant. Almalyk is in an advanced stage with financing and project tenders for the smelter, which it expects to be commissioned in 2029. Fitch expects the construction of the smelter to be funded by loan facilities from international and local financial institutions and equipment supplier financing. Yoshlik Stage-2: The second stage with planned USD5.3 billion capex includes mine expansion and a new concentrator, which will increase the company's copper production capacity to 500kt after 2030. The final investment decision on the project is expected by end 2026. Fitch expects this stage will also be funded by external debt. Increasing Leverage: Under Fitch's price assumptions and the company's ambitious capex programme, Fitch expects Almalyk's EBITDA gross leverage to rise to above 3.0x in 2029 from 1.8x in 2025, exceeding its negative rating sensitivity of 2.5x until additional production from next stage starts to contribute to earnings. Material cost overruns or delays could lead to EBITDA leverage being above the negative rating sensitivity of 2.5x for a longer period. Dividend Policy: Almalyk is distributing a minimum of 50% of net profit and has been historically paying above 100% of net profit. The company is now working towards a comprehensive financial and dividend policy that will link dividend distribution to leverage levels and management also expects to cut dividends during periods of high capex. The change in the dividend policy is yet to be approved by the government. High Execution Risk: Fitch views execution risk as high, given the project's large scale, long development period and material capex needs. The completion of the Yoshlik mine and the new processing plant has taken two years longer than expected due to technical, logistical and geopolitical issues. Almalyk remains exposed to delays, cost increases and ramp-up risk across several project phases. Fitch also expects funding needs to remain high, as Almalyk continues to invest in Yoshlik, alongside plant modernisation and other development projects, and is heavily relying on refinancing and external funding. Low Cost Producer: Fitch expects Almalyk's Kalmakir mine - the company's main asset - to be positioned on the lower half of the global copper cost curve due to its low-cost base, significant by-product credits and 70% of its costs being denominated in local currency. Fitch expects Yoshlik mine to have a similar cost position once fully operational. Long Reserve Life: The 2P reserve life for Almalyk's Kalmakir mine and Yoshlik mine combined is long at 80 years for an annual 300kt production based on JORC reserve assessment. Peer Analysis Almalyk's peers include copper producers Hudbay Minerals Inc. (BB-/Stable), First Quantum Minerals Ltd. (FQM; B/Stable), Ero Copper Corp. (B+/Stable) and Ivanhoe Mines Ltd. (B/Stable). In 2025, Almalyk's output (149,000t of copper and 0.6 million oz of gold) is higher than Hudbay's (118kt of copper and 268koz of gold), but lower than that of FQM (396kt in copper and 152koz gold). Ivanhoe produced 385kt of copper in concentrate while its new smelter is expected to ramp up in 2026. Ero is much smaller in scale with 64kt copper production, but is spread across three mining assets in Brazil. Almalyk has the highest reserve life among the peers. Almalyk's operational diversification is weaker than peers', with more than 80% of Almalyk's production comes from a single mine. With the ongoing ramp-up of Yoshlik, production will be more equally spread between two mines. Almalyk is exposed to single country operational risks in Uzbekistan. FQM generates a substantial part of its earnings from Zambia following the curtailment of its Cobre Panama mine, whereas Ivanhoe's main copper and zinc assets are located in DRC and it is developing a project in South Africa. Hudbay operates in Canada and Peru and benefits from a stronger operating environment. Almalyk has the highest profitability among the peers, with EBITDA margins of 45%-55% through the cycle, closely followed by Hudbay. Almalyk's EBITDA leverage is expected to go up to above 2.5-3.0x due to expansionary capex while peers, except for FQM and Ivanhoe, are expected to have lower leverage. Fitch’s Key Rating-Case Assumptions - Volumes in line with management assumptions, with copper concentrate ramp-up in 2026-2028 - Smelter commissioning in 2029 - Copper, gold and zinc prices in line with Fitch's price deck - Average EBITDA margin of 50% in 2025-2029 - Average annual capex of UZS24 trillion in 2026-2029 - Dividends at 100% of previous year's net income paid in 2026, 85% in 2027, and 50% in 2028-2029 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the SCP: Business and financial profile factors (assessment, relative importance): management ('bb-', Moderate), sector characteristics ('bb', Lower), market and competitive positioning ('bb-', Moderate), diversification and asset quality ('bb-', Higher), company operational characteristics ('bb+', Moderate), profitability ('bb+', Moderate), financial structure ('bb', Moderate), and financial flexibility ('b', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 10% for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 20% for the forecast year 2029. The governance assessment of 'good' has no impact. The operating environment assessment of 'b' results in an adjustment of -1 notch(es). The SCP is 'b+'. To derive the Long-Term IDR: Application of Fitch's GRE Rating Criteria results in a(n) equalised approach. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Negative sovereign rating action - Material weakening of ties with the state - EBITDA gross leverage above 2.5x on a sustained basis could be negative for the SCP but not necessarily for the IDR - Unremedied liquidity issues Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA gross leverage below 1.5x on a sustained basis could be positive for the SCP but not necessarily for the IDR For Rating Sensitivities for Uzbekistan, see rating action 'Fitch Upgrades Uzbekistan to 'BB'; Outlook Stable', dated 26 June 2025. Liquidity and Debt Structure Almalyk's standalone liquidity is stretched given its ambitious capex programme, forward-loaded debt maturities structure and negative FCF projected for 2026-2029. Almalyk's expansion capex is expected to be largely funded by loans from international banks. A delay in securing external funding could lead to the projects being deferred. Issuer Profile Almalyk is a state-owned copper and gold producer in Uzbekistan. Public Ratings with Credit Linkage to other ratings Almalyk's rating is equalised with the sovereign's. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Almalyk. ESG Considerations Almalyk has an ESG Relevance Score of '4' for Financial Transparency due to the lack of timely financial reporting, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- JSC Almalyk Mining and Metallurgical Complex LT IDR BB Affirmed BB ========= S P A I N ========= CEMENTOS MOLINS: Fitch Assigns 'BB' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has assigned Cementos Molins S.A. (Molins) a Long-Term Issuer Default Rating (IDR) of 'BB'. The Outlook is Stable. Fitch has also assigned a 'BB' senior unsecured rating to the group's proposed EUR500 million senior unsecured notes to be issued by subsidiary Molins Finance, S.A.U. The Recovery Rating is 'RR4'. The rating reflects the group's strong profitability and solid business profile, supported by its integrated business model and established positions in its target markets. The rating is constrained by a forecast 3x EBITDA leverage after the notes issue, and the group's medium size and moderate geographic diversification. The Stable Outlook reflects continued strong profitability, including high and improving EBITDA margins, and positive free cash flow (FCF) despite high near-term capex and the integration of the transformative acquisition of Companhia Geral de Cal e Cimento, S.A. (Secil). Integration risk is mitigated by the companies' clear strategic fit, including similar business mix and regional proximity. Key Rating Drivers Moderate Leverage Post-Transaction: Fitch expects Molins' EBITDA leverage to increase to 3.2x at end-2026 (from 1.0x at end-2025) following the Secil acquisition, before gradually deleveraging to 2.8x by end-2029. Modest deleveraging will be supported by low single-digit revenue growth and improving operating margins. Molins has a record of disciplined financial policy and operates within a defined internal net leverage target. Molins completed the approximately EUR1.4 billion acquisition of Portuguese cement producer Secil in March 2026. The proposed EUR500 million senior unsecured notes will refinance the bridge facility and help to finance the transaction, alongside the group's EUR680 million term loan. Fitch-defined gross debt will increase to around EUR1.6 billion after the notes issue. Increasing Operating Profitability: Fitch expects Molins' EBITDA margin to increase to 23.5% in 2026 from 19.5% in 2025, due mainly to the Secil acquisition. Secil's structurally higher EBITDA margin is supported by its higher share of cement business and lower exposure to precast. Fitch forecasts a gradual margin increase to about 25% by end-2029, driven by operating efficiencies, greater scale and acquisition-related cost savings. Profitability will also be supported by annual recurring dividends from its joint ventures in 2026-2029. Positive FCF, Higher Capex: Fitch expects Molins to generate annual low single-digit FCF margins in 2026-2029, despite high capex. Capex will be about 11% of revenue in 2026-2028 and 12.5% in 2029, mainly driven by decarbonisation and growth initiatives. These include the group's carbon capture plant in Spain, a decarbonisation project in Portugal and investments in new plant capacity. The group has flexibility to reduce or delay capex in economic downturns, which will help sustain FCF generation. Solid Business Profile: Molins is a mid-sized building materials company with strong market positions in its target geographies and an integrated business model. The group has healthy diversification across residential, non-residential and infrastructure construction segments. The business profile is constrained by its moderate scale, with forecast pro-forma EBITDA after net dividends of about EUR490 million in 2026, and moderate geographic diversification, as over half of the group's EBITDA after net dividends is generated in Spain and Portugal. Acquisition Increases Diversification: The transformative acquisition of Secil, completed in March 2026, has materially increased scale and improved geographic diversification. Pro-forma EBITDA after net dividends will increase by about 75%, while euro-denominated revenue will increase to about 70% in 2026, from about 62% at end-2025. This reduces FX volatility from the group's exposure to Latin America and Tunisia. The combined group is a leading Iberian building materials company with operations in 18 countries. The transaction also made Molins the second-largest cement producer in Portugal and added Brazil to its footprint. Manageable Integration Risk: Execution risk is mitigated by the clear strategic fit between the two companies, including a similar business mix and regional proximity. The transaction also offers benefits from greater scale and operating efficiencies, including sourcing and overhead cost reductions. Integration risk is further moderated by Secil's sound profitability and autonomous management. Nevertheless, post-merger integration remains an important rating driver. Integrated Business Model: Molins has better product diversification than companies focused only on cement and aggregates, supported by its value-added building solutions segment, including growing precast operations. Fitch views its integrated solutions strategy as supportive of its credit profile, due mainly to stronger pricing power and lower demand volatility than for pure cement producers. Peer Analysis Fitch views Molins' business profile to be broadly in line with Titan S.A. (BB+/Positive) and weaker than larger and more diversified peers including CRH plc (BBB+/Stable) and Holcim Ltd (BBB+/Stable). Titan's somewhat larger scale of operations and stronger geographic diversification with a focus on less volatile markets is offset by Molins' stronger product diversification, mainly due to exposure to higher value-added products, including precast solutions. Molins has strong profitability supported by expected high EBITDA margins of 23%-25% and low single-digit FCF margins despite high capex, which is broadly in line with Titan. The latter's higher rating is mainly driven by stronger leverage profile with forecast Fitch-defined EBITDA gross leverage of 1.5x at end-2026 and 1.3x at end-2027, compared with Molins' 3.1x and 3.2x, respectively. Fitch’s Key Rating-Case Assumptions - Low single-digit organic revenue growth annually in 2026-2029 - Fitch's EBITDA margin at about 23.5% in 2026, about 150bps gradual increase by 2029 mainly driven by increasing scale, operational efficiencies in Spain, Portugal, Tunisia and Argentina as well as expected cost savings from the transaction - Annual recurring dividends from joint ventures broadly in line with historical levels (EUR103 million in 2025) - Net working-capital requirement at 1% of revenue in 2026-2029 - Capex at 11% of revenue in 2026-2028 and 12.5% in 2029, driven by decarbonisation and growth initiatives - Average annual dividends of about EUR73 million in 2026-2029 - No significant new M&A bolt-on acquisitions Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (bbb-, Lower), Sector Characteristics (bb+, Moderate), Market and Competitive Positioning (bb, Higher), Diversification and Asset Quality (bb, Moderate), Company Operational Characteristics (bb, Moderate), Profitability (bbb+, Lower), Financial Structure (bb+, Higher), and Financial Flexibility (bb+, Moderate). - The quantitative financial subfactors are based on custom CRT financial period parameters: 40% weight for the forecast year 2026, 40% for the forecast year 2027 and 20% for the forecast year 2028. - Weakest link considerations adjustment is applied based on Market and Competitive Positioning factor and results in an adjustment of -1 notch(es). - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'bbb' results in no adjustment. - The SCP is 'bb'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA gross leverage above 3.5x on a sustained basis - Lack of consistently positive FCF generation - Significant Integration challenges leading to profitability pressures Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA gross leverage below 2.5x on a sustained basis - FCF margin consistently above 1% - Improved business risk profile, reflecting increased scale or geographical diversification Liquidity and Debt Structure Molins' liquidity profile after the acquisition will be supported by about EUR245 million of readily available cash (excluding about EUR40 million restricted by Fitch) and access to an undrawn EUR225 million revolving credit facility due in 2030. Fitch forecasts positive FCF in 2026-2029. The group's debt maturity profile after acquisition will be concentrated in the EUR680 million term loan and EUR500 million senior unsecured notes maturities in 2031 and 2033, respectively. The group's other debt mainly includes Secil's EUR195 million debt and an existing EUR75 million term loan. Issuer Profile Molins is a Spanish-headquartered leading Iberian building materials and solutions company, with an integrated business model focussed on cement, concrete and aggregates, precast solutions, construction solutions, urban landscape, and the circular economy. Date of Relevant Committee 05-May-2026 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Molins. 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 ----------- ------ -------- Cementos Molins S.A. LT IDR BB New Rating Molins Finance, S.A.U. senior unsecured LT BB New Rating RR4 =========== T U R K E Y =========== TURKIYE GARANTI: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Turkiye Garanti Bankasi A.S.'s (Garanti BBVA) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) and Long-Term Local-Currency (LTLC) IDR at 'BB-'. The Outlooks on the IDRs are Stable. At the same time, Fitch has affirmed Garanti BBVA's Viability Rating (VR) at 'bb-'. Key Rating Drivers IDR Driven By VR; Underpinned by Support: Garanti BBVA's LTFC and LTLC IDRs are driven by its VR and underpinned by its Shareholder Support Rating (SSR). The Stable Outlooks on the IDRs mirror those on the sovereign. Garanti BBVA's 'bb-' VR, reflects its good financial metrics, solid domestic franchise and comfortable FC liquidity and capital buffers. The VR also reflects the concentration of its operations in Turkiye. Country Ceiling Constrains Shareholder Support: Garanti BBVA's SSR considers potential support from Banco Bilbao Vizcaya Argentaria, S.A. (BBVA; A/Stable/a-), which has an 86% stake, mainly reflecting the former's strategic importance to, and integration with, BBVA. Garanti BBVA's SSR and LTFC IDR are constrained by Turkiye's Country Ceiling of 'BB-', which captures Fitch's view of transfer and convertibility risk in Turkiye, while the bank's LTLC IDR also considers country risks. Iran Conflict Pressures Operating Environment: Fitch considers macroeconomic stability risks and external financing pressures to have risen following the Iran conflict. This led to a marked fall in Turkiye's international reserves since the start of the war. A prolonged conflict would likely pose greater challenges to banks' financial and risk profiles through higher-for-longer lira rates and inflation. Solid Domestic Franchise: Garanti BBVA is a domestic systemically important bank, accounting for 8% of sector assets on an unconsolidated basis at end-1Q26. The bank has an entrenched domestic banking franchise across all customer segments. This underpins Garanti BBVA's solid business generation prospects and consistent earnings performance. Exposure to Turkish Operating Environment Risks: Garanti BBVA's risk profile factors in its integration with BBVA in risk-management policies and practices that are fully aligned with, and overseen by, the parent. However, the bank's risk profile remains sensitive to the operating environment in Turkiye, given the concentration of its operations in the domestic market. Rising Impaired Loans Ratio: The impaired loans (Stage 3) ratio continued to increase to 3.2% at end-1Q26 (end-2025: 3.1%; end-2024: 2.1%) reflecting rising impaired loans, mainly from unsecured retail lending, despite collections, non-performing loan sales and limited write-downs. Fitch expects the impaired loans ratio to rise to around 4% by end-2026 on still-high lira interest rates and inflation, and slow GDP growth. Total loan loss allowances coverage of impaired loans fell slightly (end-1Q26: 97%; end-2025: 101%). FC lending (end-1Q26: 33% of gross loans), sizeable Stage 2 loans (10.8%), loan concentration and seasoning could also present risks to asset quality. Sustained Profitability: Garanti BBVA's operating profit/risk-weighted assets ratio remained strong at 5.2% in 1Q26 (2025: 5.1%; sector: 4.6%), supported by high net interest margins and fee income. This was despite inflation-driven cost pressure, higher impairment charges and trading losses. Fitch expects the ratio to moderate to a still healthy 4% in 2026, excluding estimated gains of about EUR130 million from the sale of the Romanian subsidiary, due to slower loan growth, high credit costs and still-high operating costs. Continued net interest margin expansion from lira rate cuts, now likely in 2H26, should provide some support. Profitability remains sensitive to the regulatory environment. Above-Peer Core Capitalisation: Garanti BBVA's common equity Tier 1 ratio, net of forbearance, was above peers but down to 12% at end1Q26 (end-2025: 13.1%) reflecting the higher operational risk charge, market and credit risk charge, and dividend payments. Fitch expects the common equity Tier 1 ratio to remain around these levels by end-2026 supported by internal capital generation. The total capital ratio of 16.2% (end-2025:17.5% net of forbearance) is supported by FC subordinated Tier 2 debt, which provides a partial hedge against lira depreciation. Capitalisation is supported by strong internal capital generation (1Q26 return on equity: 30.3%, annualised), solid pre-impairment profit (8.9% of average loans, annualised) and high total reserves coverage of impaired loans, but is sensitive to lira depreciation, asset-quality risks and growth. Largely Deposit Funded: Garanti BBVA is largely funded by customer deposits (end-1Q26: 85.3% of non-equity funding). FC deposits (35% of customer deposits) create risks to FC liquidity. The share of FC wholesale funding is moderate (12.5% of non-equity funding) but Garanti BBVA has proven, good access to international funding markets. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of Garanti BBVA's LT IDRs would require a downgrade of both its VR and SSR. A downgrade of the VR would follow a downgrade of the sovereign ratings. A VR downgrade could also arise from a material erosion in capital and FC liquidity buffers or a sustained deterioration in impaired loans, resulting in material decline in earnings. Garanti BBVA's SSR is sensitive to a sovereign downgrade. The SSR is also sensitive to Fitch's view of BBVA's ability and propensity to provide support. The Short-Term IDRs are sensitive to a multi-notch downgrade of the LT IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Turkiye's LT IDRs and an upward revision of the Country Ceiling would likely lead to similar action on Garanti's SSR and LT IDRs. A VR upgrade for Garanti would require an upgrade of the sovereign rating, likely leading to an upward revision of the operating environment score, while maintaining a healthy financial profile. The Short-Term IDRs are sensitive to a multi-notch upgrade of the LT IDRs. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Garanti BBVA's senior unsecured debt ratings are aligned with its IDRs, reflecting average recovery prospects in a default. Garanti BBVA's Tier 2 notes are rated one notch below its LTFC IDR. The notching for the subordinated notes' rating includes one notch for loss severity and zero notches for non-performance risk relative to the LTFC IDR anchor rating. The one notch for loss severity reflects its view of below-average recovery prospects for the notes in a non-viability event. The one notch, rather than the baseline two notches, reflects its view that the main risk is to timely payment rather than recovery as the LTFC IDR anchor already embeds country risks. The 'AA(tur)' National Rating is driven by shareholder support and in line with foreign-owned peers'. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The bank's senior unsecured debt ratings are sensitive to changes in the bank's IDRs. Garanti BBVA's Tier 2 notes' rating is primarily sensitive to a change in the LTFC IDR anchor rating. It is also sensitive to a revision in Fitch's assessment of loss severity and non-performance risk. The National Rating is sensitive to changes in Garanti BBVA's LTLC IDR and its creditworthiness relative to other Turkish issuers'. VR ADJUSTMENTS The operating environment score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): sovereign rating (negative). The business profile score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): business model (negative). The earnings & profitability score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): revenue diversification (negative). Public Ratings with Credit Linkage to other ratings Garanti BBVA has ratings linked to its parent bank's ratings. ESG Considerations Garanti BBVA's ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on Garanti BBVA's credit profile and is relevant to the ratings in combination with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Turkiye Garanti Bankasi A.S. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT AA(tur) Affirmed AA(tur) Viability bb- Affirmed bb- Shareholder Support bb- Affirmed bb- senior unsecured LT BB- Affirmed BB- subordinated LT B+ Affirmed B+ senior unsecured ST B Affirmed B ============= U K R A I N E ============= VF UKRAINE: Fitch Lowers LongTerm IDR to 'CCC-' ----------------------------------------------- Fitch Ratings has downgraded Private Joint Stock Company VF Ukraine's (VFU) Long-Term Issuer Default Rating (IDR) and senior unsecured debt rating to 'CCC-' from 'CCC'. The Recovery Rating remains at 'RR4'. The debt is issued by VFU's subsidiary VFU Funding Plc. The downgrade reflects significant refinancing risk for the company's Eurobonds (USD280.1 million outstanding as of December 2025) as maturity approaches in February 2027. Fitch expects National Bank of Ukraine (NBU) to continue restricting private companies' cross-border foreign-currency (FC) payments to meet foreign debt obligations. Fitch also anticipates VFU to have limited access to international capital markets and insufficient liquidity in foreign accounts to cover the upcoming maturity. The ratings remain supported by VFU's strong position in the Ukrainian mobile telecom market, high profitability, strong domestic free cash flow (FCF) generation and low leverage. Fitch estimates VFU has sufficient liquidity for operations and debt repayment when NBU grants FC repatriation approval. Key Rating Drivers Heightened Refinancing Risk: VFU's outstanding USD280.1 million senior unsecured notes mature in February 2027. Fitch believes NBU's continued restrictions on private companies' cross-border FC payments, alongside limited access to international capital markets and a challenging operating environment, mean that refinancing risk is increasing as the maturity approaches. Fitch believes that these constraints have raised the likelihood of a near-term debt restructuring event and could result in further negative rating action, with a default on the notes remaining a real possibility upon maturity. Fitch would view a debt restructuring or exchange imposing a material reduction of the original terms and conducted to avoid a default as a distressed debt exchange (DDE) under Fitch's Corporate Rating Criteria. Strong Domestic Liquidity: Fitch expects VFU to have sufficient funds within Ukraine, sourced from a mix of internally generated cash and loans from local banks, to repay the debt. As of end-2025, the company had UAH8 billion of cash on its balance sheet, around 50% of which was in US dollars and euros. However, the ability to repay or refinance will depend on NBU's decisions, the future Ukrainian economic and operating environment, and future foreign investor appetite, which is currently uncertain. Moratorium on Debt Repayment Unclear: NBU had relaxed cross-border FC restrictions to allow interest payments on external loans. However, the repayment of these loans from onshore accounts is still not permitted. While VFU previously received an exception for a coupon payment, this does not currently extend to principal payments, and it remains unclear how such exceptions will be applied in practice, given disruptions caused by the ongoing conflict and martial law. Sound Performance Despite War: In 2025 VFU reported revenue growth of 14%, supported by 16% growth in average revenue per user (ARPU) that partly offset a 2.6% drop in the mobile customer base. Assuming the impact of the war remains similar, Fitch forecasts the company's revenue to continue growing in the mid- to high-single digits in 2026-2028, driven by price rises and the expansion of its fixed customer base. Fitch expects the company will continue generating positive FCF in 2026-2027, despite capex remaining at about 30% of revenue in its base case, sufficient to repair network damages. Infrastructure Remains Operational: VFU has implemented all necessary measures to ensure uninterrupted communication services and operations, even though the future escalation of war hostilities remains uncertain. In addition, VFU's users in controlled areas still have access to other providers' networks via a national roaming agreement should the company's network service be disrupted. Domestic Operating Environment: Fitch estimates Ukraine's real GDP growth at 3.2% in 2025, negatively influenced by repeated Russian attacks on energy infrastructure and poorer Ukrainian harvest conditions. Fitch forecasts growth to slow to 1.8% in 2026 due to spillovers from the Iran conflict. However, a durable and credible ceasefire - if it were to materialize - could significantly lift the country's growth prospects in 2026-2027. Peer Analysis VFU's ratings are driven by very high refinancing risk, due to limited access to international capital markets and cross-border payment restrictions - outside of VFU's control - and a highly challenging operating environment in Ukraine. The uncertainty created by the war makes meaningful differentiation between companies less relevant at present. Fitch rates VFU on a standalone basis in line with its Parent and Subsidiary Linkage Rating Criteria. Fitch considers the overall linkage between VFU and its ultimate parent Neqsol Holding B.V. as weak and there are effective ring-fencing clauses in the Eurobond documentation limiting dividends and supporting VFU's credit profile. Fitch's Key Rating-Case Assumptions - Revenue growth in the high single-to low double-digits in 2026 and 2027 and gradually slowing to the mid-single digits in 2028-2029, supported by further ARPU and fixed customer base growth - Fitch-defined EBITDA margin to decline to 40.9% in 2026 and to remain largely stable, reflecting cost inflationary pressures - Working-capital outflow at 0.5% of revenue across 2026-2027 - Capex at 30% of revenue across 2026-2027, reflecting uncertainty around war-related recovery expenditure and the Ukrainian hryvnia. -- Dividend payments restricted to the statutory limit of EUR12 million a year across 2026-2027. - No acquisitions and disposals. - Debt repayment of UAH764 million (equivalent of USD15 million) in 2026 - Ukrainian hryvnia to the US dollar at 42.9 in 2026 and 44.5 in 2027, with further annual depreciation of about 5% in 2028-2029. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb', Lower), sector characteristics ('bbb', Lower), market and competitive positioning ('bb+', Higher), diversification and asset quality ('bb', Moderate), company operational characteristics ('bbb', Lower), profitability ('a-', Lower), financial structure ('bbb+', Moderate), and financial flexibility ('ccc+', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. B+ to CC considerations apply in its analysis and results in an adjustment of -4 notches. The governance assessment of 'good' has no impact. The operating environment assessment of 'ccc' has no impact. The SCP is 'ccc-'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'CCC-'. Recovery Analysis Key Recovery Assumptions - The recovery analysis assumes that VFU would be considered a going concern in bankruptcy and that it would be reorganised rather than liquidated - A 10% administrative claim - Fitch's view of a sustainable post-reorganisation going-concern EBITDA is UAH5,500 million, which would reflect a decrease in the number of subscribers as a result of the war - An enterprise value (EV) multiple of 2.5x is used to calculate a post-reorganisation valuation. This multiple reflects the current disrupted operating environment - Loan participation notes of UAH11.6 billion (equivalent to USD280.1 million debt at Fitch forecast average FX rate hryvnia /US dollar of 41.6 in 2025. - Recovery Ratings for Ukrainian issuers capped at 'RR4' in accordance with its country-specific treatment of Recovery Ratings. Therefore, the rating of VFU's senior unsecured debt is assigned at the level of the Long-Term IDR at 'CCC-' RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Downgrade - Expectation of a near-term DDE (as defined by Fitch) or increased likelihood of a default, bankruptcy or forced restructuring. Indications of such risks will be public statements regarding debt restructuring, hiring of restructuring advisors, agreements with lenders or failure to reach an agreement with lenders that results in alternative restructuring plans Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Full removal of cross-border payment controls enabling the full repayment of the outstanding principal with reduced liquidity and refinancing risks - Successful refinancing of the 2027 Eurobonds and avoidance of a DDE according to Fitch's Corporate Rating Criteria Liquidity and Debt Structure As of 31 December 2025, VFU had about UAH 8,090 million in cash and equivalents in Ukraine. Fitch expects VFU to remain FCF-positive in 2026-2027 and have sufficient funds to meet the increased coupon payment obligations - subject to no further NBU cross-border restrictions - and to comply with the liquidity covenant requiring VFU to maintain liquidity of USD200 million from 11 August 2025. However, the lack of access to international capital markets and capital controls on cross-border FC payments imposed by the NBU limiting the ability to repay FC principal debt obligations restrict VFU's ability to redeem or refinance the USD280.1 million outstanding bond maturity in February 2027. Issuer Profile VFU is Ukraine's second-largest mobile operator in with a 30% share of the market by revenue and with about 15 .4 million subscribers at end-2025 The company operates under the 'Vodafone' brand and fully owns its mobile infrastructure with country-wide coverage. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate. VS screener did not indicate an elevated risk for VFU. 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 Prior ----------- ------ -------- ----- VFU Funding Plc senior unsecured LT CCC- Downgrade RR4 CCC Private Joint Stock Company VF Ukraine LT IDR CCC- Downgrade CCC =========================== U N I T E D K I N G D O M =========================== BARRETTS OF WOODBRIDGE: BTG Begbies Appointed as Administrators --------------------------------------------------------------- Barretts of Woodbridge Limited was placed into administration in the High Court of Justice, Court Number CR-2026-003175. Lee De'ath and Tom Gardiner of BTG Begbies Traynor (Central) LLP were appointed as Joint Administrators on May 7, 2026. The Company was in the business of retailing furniture, lighting and similar items in a specialised store. Its registered office and principal trading address is 40 Thoroughfare, Woodbridge, IP12 1AL. The Joint Administrators can be contacted at: Lee De'ath Tom Gardiner BTG Begbies Traynor (Central) LLP Town Wall House Balkerne Hill Colchester Essex CO3 3AD Further information: Contact: Phoebe Bradshaw Email: Phoebe.Bradshaw@btguk.com Tel: 01206 217900 BERRIDGE VENUES: RBW Restructuring Appointed as Administrators -------------------------------------------------------------- Berridge Venues Limited (trading as The Bull Auberge) was placed into administration in The Business & Property Courts of England & Wales, Court Number CR-2026-003478. Michael Wellard of RBW Restructuring Limited and Nigel Heath Sinclair of Richard Long & Co were appointed as Joint Administrators on May 5, 2026. The Company engaged in hotels and similar accommodation, licensed restaurants, and public houses/bars. Its registered office and principal trading address is The Bull Auberge, Ipswich Road, Yaxley, Suffolk, IP23 8BZ. The Joint Administrators can be contacted at: Michael Wellard RBW Restructuring Limited Castlegate House 36 Castle Street Hertford Hertfordshire SG14 1HH -- and -- Nigel Heath Sinclair Richard Long & Co Castlegate House 36 Castle Street Hertford Hertfordshire SG14 1HH Further information: Tel: 01992 503372 Email: sophie.wellard@rl-co.co.uk CABLE STREET: KR8 Advisory Appointed as Joint Administrators ------------------------------------------------------------ Cable Street Lancaster Development Limited (formerly known as Priestley Homes (Cable Street) Limited) was placed into administration in the High Court of Justice, Business and Property Courts in Leeds, Insolvency & Companies List (ChD), Court Number CR-2026-000472. Mark Blackman and Lauren Wentworth of KR8 Advisory Limited were appointed as Joint Administrators on May 5, 2026. The Company engaged in the buying and selling its own real estate. Its registered office is c/o KR8 Advisory Limited, The Lexicon, 10–12 Mount Street, Manchester, M2 5NT. Its principal trading address is 2nd Floor Offices, Marygate House, 2 Marygate, Wakefield, WF1 1NX. The Joint Administrators can be contacted at: Mark Blackman Lauren Wentworth KR8 Advisory Limited The Lexicon 10–12 Mount Street Manchester M2 5NT Further information: Email: CaseEnquiries@kr8.co.uk Contact: Arvin Ashtab CRG MEDICAL: RSM UK Restructuring Appointed as Administrators ------------------------------------------------------------- CRG Medical Services Ltd was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Court Number CR-2026-003444. Joe Barry and Damian Webb of RSM UK Restructuring Advisory LLP were appointed as Joint Administrators on May 1, 2026. The Company engaged in business support service activities. Its registered office and principal trading address is Cumberland Court, 80 Mount Street, Nottingham, NG1 6HH. The Joint Administrators can be contacted at: Joe Barry RSM UK Restructuring Advisory LLP 10th Floor, 103 Colmore Row Birmingham B3 3AG -- and -- Damian Webb RSM UK Restructuring Advisory LLP 25 Farringdon Street London EC4A 4AB Further information: Tel: 0203 201 8118 Contact: Samir Akram Case Manager, RSM UK Restructuring Advisory LLP DENBY USA: FRP Advisory Appointed as Joint Administrators --------------------------------------------------------- Denby USA Limited was placed into administration in the High Court of Justice, Court Number CR-2026-000412. Anthony John Wright and Geoffrey Paul Rowley, of FRP Advisory Trading Limited were appointed as Joint Administrators on May 5, 2026. The Company engaged in manufacturing. Its registered office is Denby Pottery, Denby, Ripley, Derbyshire, England, DE5 8NX and is in the process of being changed to c/o FRP Advisory Trading Limited, 110 Cannon Street, London, EC4N 6EU. Its principal trading address is Denby Pottery, Denby, Ripley, Derbyshire, England, DE5 8NX. The Joint Administrators can be contacted at: Anthony John Wright Geoffrey Paul Rowley FRP Advisory Trading Limited 110 Cannon Street London EC4N 6EU Further information: Contact: Aaron Graft Tel: 020 3005 4000 Email: cp.london@frpadvisory.com E-CARAT UK 2026-1: Fitch Assigns BB-sf Final Rating on Cl. F Notes ------------------------------------------------------------------ Fitch Ratings has assigned E-CARAT UK 2026-1 PLC final ratings. The final ratings for the class B, D, E, and F are one notch higher than the expected ratings assigned due to final lower spreads and a lower swap rate. Entity/Debt Rating Prior ----------- ------ ----- E-CARAT UK 2026-1 PLC Class A XS3311990363 LT AAAsf New Rating AAA(EXP)sf Class B XS3311990520 LT AA+sf New Rating AA(EXP)sf Class C XS3311990793 LT A+sf New Rating A+(EXP)sf Class D XS3311990876 LT A-sf New Rating BBB+(EXP)sf Class E XS3311990959 LT BBB-sf New Rating BB+(EXP)sf Class F XS3311991098 LT BB-sf New Rating B+(EXP)sf Class G XS3311991171 LT NRsf New Rating NR(EXP)sf Transaction Summary The transaction is a securitisation of auto loan receivables originated and serviced by Stellantis Financial Services UK Limited. The financed vehicles are mainly from Stellantis brands such as Vauxhall, Peugeot, Citroën and Fiat, and, to a lesser extent, non-Stellantis brands. A discounted asset balance was sold to the issuer at the closing date, with additional loans to be sold during a one-year revolving period, subject to eligibility and replenishment criteria. KEY RATING DRIVERS Stable Performance Drives Base Case: Fitch has set a 1.5% lifetime default base-case assumption for the portfolio, reflecting stable and strong historical default performance across the entire pool. Overall performance has been resilient, despite some volatility for pandemic-affected vintages, with recent originations showing improvement. The high 'AAAsf' default multiple of 7.0x is due to the low absolute level of the base case and the risks associated with the revolving period. The base-case recovery rate is 65%, mostly reflecting recoveries achieved in recent vintages. The 'AAAsf' haircut is in line with peer transactions at 45%, due mainly to the secured nature of the assets. RV and VT Risks Contained: The transaction is exposed to both residual value (RV) and voluntary termination (VT) risks. However, overall RV exposure is constrained by a 30% portfolio limit, which is already reached. As a result, Fitch does not expect an increase in RV exposure during the revolving period. Fitch has applied a 'AAAsf' RV loss assumption of 6.7% and a VT loss assumption of 6.4% to the total stressed pool, reflecting the portfolio's risk profile under stress scenarios. Pro Rata Note Amortisation: The class A to G notes are repaid pro rata from the first payment date after the end of the revolving period unless a sequential amortisation event occurs. This event is mainly defined in relation to portfolio performance metrics, such as a principal deficiency ledger (PDL) or cumulative losses exceeding certain thresholds. The tail risk posed by the pro rata paydown is mitigated by the mandatory switch to sequential amortisation when the portfolio balance falls below 10% of the initial balance. Experienced Servicer: There is no replacement servicer in place at closing. A replacement servicer will be appointed if Stellantis Financial Services UK fails to fulfil payment obligations to the issuer, fails to materially comply with its other covenants or obligations, or becomes insolvent. A back-up servicer facilitator is in place. An amortising liquidity reserve is available to cover liquidity gaps on the class A to D notes resulting from servicing discontinuity or other payment interruptions. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Unanticipated increases in the frequency of defaults or decreases in recovery rates could produce larger losses than the base case and could result in negative rating action on the notes. Sensitivities to higher default rates and lower recoveries are shown below: Expected impact on the notes' ratings of increased defaults (class A/B/C/D/E/F/G) Increase default rates by 10%: 'AAAsf'/'AA+sf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Increase default rates by 25%: 'AAAsf'/'AA+sf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Increase default rates by 50%: 'AA+sf'/'AAsf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Expected impact on the notes' ratings of reduced recoveries (class A/B/C/D/E/F/G) Reduce recovery rates by 10%: 'AAAsf'/'AA+sf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Reduce recovery rates by 25%: 'AAAsf'/'AA+sf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Reduce recovery rates by 50%: 'AAAsf'/'AA+sf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Expected impact on the notes' ratings of increased defaults and reduced recoveries (class A/B/C/D/E/F/G) Increase default rates by 10% and reduce recovery rates by 10%: 'AAAsf'/'AA+sf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Increase default rates by 25% and reduce recovery rates by 25%: 'AA+sf'/'AAsf'/'A+sf'/'A-sf'/'BBB-sf'/'BB-sf'/'NRsf' Increase default rates by 50% and reduce recovery rates by 50%: 'AA+sf'/'AA-sf'/'Asf'/'BBBsf'/'BBsf'/'Bsf'/'NRsf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Unanticipated decreases in the frequency of defaults or increases in recovery rates could produce smaller losses than the base case and could result in positive rating action on the notes. The expected impact on the notes' ratings of decreased default rates and increased recovery rates (class A/B/C/D/E/F/G) Reduce default rates by 10% and increase recovery rates by 10%: 'AAAsf'/'AA+sf'/'AAsf'/'A+sf'/BBB+sf'/'BB+sf'/'NRsf' USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. 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 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. HAWKSMOOR MORTGAGE 2026: Fitch Rates Class F Notes 'B(EXP)sf' ------------------------------------------------------------- Fitch Ratings has assigned Hawksmoor Mortgage Funding 2026 plc (Hawksmoor 26) expected ratings. The assignment of final ratings is contingent on the receipt of final transaction documentation conforming to information already reviewed by Fitch. Entity/Debt Rating ----------- ------ Hawksmoor Mortgage Funding 2026 plc Class A1 NRR Loan Note LT AAA(EXP)sf Expected Rating Class A1 Notes LT AAA(EXP)sf Expected Rating Class A2 Notes LT AAA(EXP)sf Expected Rating Class B Notes LT AA-(EXP)sf Expected Rating Class C Notes LT A-(EXP)sf Expected Rating Class D Notes LT BBB(EXP)sf Expected Rating Class E Notes LT BB(EXP)sf Expected Rating Class F Notes LT B(EXP)sf Expected Rating Class G Notes LT B-(EXP)sf Expected Rating Class X Notes LT B-(EXP)sf Expected Rating Class Z Notes LT NR(EXP)sf Expected Rating VRR Loan Notes LT NR(EXP)sf Expected Rating Transaction Summary Hawksmoor 26 is a securitisation of UK non-conforming (UKN) owner-occupied (OO: 91.8%) and buy-to-let (BTL: 8.2%) mortgages originated in the UK by various legacy UKN lenders. The assets were previously securitised in Stratton Hawksmoor 2022-1 PLC, which was a Fitch-rated transaction. KEY RATING DRIVERS Seasoned Non-Conforming Loans: The portfolio is highly seasoned at 233 months. The pool has a high weighted average (WA) original loan-to-value (LTV) of 85.7% but has benefited from borrower deleveraging, with a WA current LTV (CLTV) of 74.9%, and a significant amount of indexation leading to a WA indexed CLTV of 45.9%. This leads to an overall WA sustainable LTV (sLTV) of 51.4%. The pool is typical for pre-global financial crisis UKN transactions, with pre-2014 OO originations and a high proportion of interest-only (IO) loans, loans with self-certified income and a large proportion of the pool in arrears for longer than one month (29.1%). Fitch therefore applied the UKN and BTL assumptions set out in the UK RMBS Rating Criteria. Robust Payrates: The payrates for the pool, being the total payment made in a given period compared with the total payment due, have been fairly strong. The pool's payrate has been 90%-100% for the past three years, when Fitch limits maximum monthly payments for a given loan at 200%. Unhedged Basis Risk: The pool contains 93% of loans linked to the Bank of England base rate (BBR). There will be no hedge in place at close. As the notes pay daily compounded SONIA, the transaction is exposed to basis risk between the BBR and SONIA. Fitch has incorporated this risk into its analysis by implementing a margin reduction of 0.15% in rising and stable interest rate stress scenarios, in line with its UK RMBS Rating Criteria. Reserves Provide Liquidity: The liquidity reserve provides payment coverage for senior fee payments, class A payments and, subject to conditions, class B payments. The general reserve fund provides payment coverage to these items and the other notes' interest payments. As neither reserve can be used to cover credit losses, they are more likely to be available to address interest shortfalls. Late-Stage Arrears Assumed as Defaulted: Fitch treats loans that are more than 12 months in arrears as defaulted for the purpose of asset and cash flow modelling under its criteria. This is to account for the pool producing less revenue than if it were fully performing. Late-stage arrears treated as defaulted account for 11.5% of the total pool in Hawksmoor 26. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction performance may be affected by changes in market conditions and economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce the CE available to the notes. Fitch found that a 15% increase in the weighted average foreclosure frequency and a 15% decrease in the weighted average recovery rate would indicate model-implied downgrades of up to four notches each for the class A, B and C notes; five notches for the class D notes; at least four notches for the class E notes; and at least one notch for the class F notes. The class G and X notes are already at the lowest non-distressed rating. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Stable-to-improved asset performance driven by stable delinquencies and defaults would lead to increasing CE levels and, potentially, upgrades. Fitch found that a decrease in the weighted average foreclosure frequency of 15% and an increase in the weighted average rating recovery rate of 15% would lead to upgrades of up to two notches for the class B notes, and four notches each for the class C to G notes. The class X notes would be unaffected. The class C and below notes are capped at 'A+sf' due to a lack of dedicated liquidity. The class A notes are already at 'AAAsf' and cannot be upgraded. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Hawksmoor 26 has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the OO sub-pool comprising a significant proportion (over 20%) of pre-2014 collateral with limited affordability checks and self-certified income. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Hawksmoor 26 has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to the OO sub-pool containing a concentration (over 20%) of interest-only loans. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. HOLMESTERNE FARM: Interpath Advisory Appointed as Administrators ---------------------------------------------------------------- Holmesterne Farm Co. Limited (trading as Holmesterne Foods) was placed into administration in the High Court of Justice, Business and Property Courts in Leeds, Insolvency and Companies List (ChD), Court Number CR-2026-LDS-000500. James Richard Clark and Howard Smith of Interpath Advisory were appointed as Joint Administrators on May 11, 2026. The Company engaged in the wholesale of meat and meat products. Its registered office is Interpath Ltd, 4th Floor, Tailors Corner, Thirsk Row, Leeds, LS1 4DP. Its principal trading address is Gatherley Road Industrial Estate, Brompton On Swale, Richmond, North Yorkshire, DL10 7JQ. The Joint Administrators can be contacted at: James Richard Clark Howard Smith Interpath Advisory / Interpath Ltd 4th Floor, Tailors Corner Thirsk Row Leeds LS1 4DP Further information: Tel: 0191 933 4548 HOW NOW: Westcotts Business Appointed as Administrators ------------------------------------------------------- How Now Dairy Ltd (trading as How Now Dairy) was placed into administration in the High Court of Justice, Business and Property Courts in Bristol, Court Number CR-2026-BRS-000065. Jon Mitchell of Westcotts Business Recovery LLP was appointed as Administrator on May 8, 2026. The Company engaged in the raising of dairy cattle and the production of liquid milk and cream. Its registered office and principal trading address is Old Parsonage Farm, Dartington, Totnes, Devon, England, TQ2 6EA. The Administrator can be contacted at: Jon Mitchell Westcotts Business Recovery LLP 26–28 Southernhay East Exeter, Devon EX1 1NS Further information: Email: insolvency@westcotts.uk Contact: Kerry Austin INSTANT DESPATCH: FRP Advisory Appointed as Joint Administrators ---------------------------------------------------------------- Instant Despatch Services Limited (trading as Loop Logistics) was placed into administration in the High Court of Justice, Court Number CR-2026-002592. Glyn Mummery and Julie Humphrey of FRP Advisory Trading Limited were appointed as Joint Administrators on May 6, 2026. The Company engaged in freight transport by road. Its registered office is Unit 8, Mansard Close, Westgate Industrial Estate, Northampton, NN5 5DL and is in the process of being changed to Jupiter House, Warley Hill Business Park, The Drive, Brentwood, Essex, CM13 3BE. Its principal trading address is Unit 8, Mansard Close, Westgate Industrial Estate, Northampton, NN5 5DL. The Joint Administrators can be contacted at: Glyn Mummery Julie Humphrey FRP Advisory Trading Limited Jupiter House Warley Hill Business Park The Drive Brentwood Essex CM13 3BE Further information: Contact: Elizabeth Heggs Email: cp.brentwood@frpadvisory.com Tel: 01277 50 33 33 NATIONWIDE SELF-STORAGE: Hudson Weir Appointed as Administrator --------------------------------------------------------------- Nationwide Self-Storage Limited (trading as Nationwide Storage) was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number CR-2026-003617. Kevin Weir of Hudson Weir Ltd was appointed as Administrator on May 11, 2026. The Company engaged in the operation of warehousing and storage facilities for land transport activities. Its registered office is 5th Floor, 2 Copthall Avenue, London, EC2R 7DA. Its principal trading address is 620 Western Avenue, Ealing, London, W3 0TE. The Administrator can be contacted at: Kevin Weir Hudson Weir Ltd 56 Leman Street London E1 8EU Further information: Tel: 020 7099 6086 Email: dominique@hudsonweir.co.uk Contact: Dominique Mingo POLARIS 2026-2: Fitch Assigns 'B(EXP)sf' Rating on Class X2 Debt ---------------------------------------------------------------- Fitch Ratings has assigned Polaris 2026-2 PLC (Polaris 26-2) expected ratings. The assignment of final ratings is contingent on the receipt of final transaction documentation conforming to information already reviewed by Fitch. Entity/Debt Rating ----------- ------ Polaris 2026-2 PLC A XS3371704803 LT AAA(EXP)sf Expected Rating B XS3371704985 LT AA-(EXP)sf Expected Rating C XS3371705016 LT A-(EXP)sf Expected Rating D XS3371705107 LT BBB(EXP)sf Expected Rating E XS3371705289 LT BB+(EXP)sf Expected Rating F XS3371705362 LT B+(EXP)sf Expected Rating X1 XS3371705529 LT BB-(EXP)sf Expected Rating X2 XS3371705792 LT B(EXP)sf Expected Rating Transaction Summary Polaris 26-2 is a securitisation of owner-occupied (OO) and buy-to-let (BTL) mortgages originated by UK Mortgage Lending Ltd, which is wholly owned by Pepper Money Limited (Pepper). The loans are secured on properties located in the UK. The transaction includes 2021 originations previously securitised in the Polaris 2022-1 PLC transaction, as well as more recent loans originated in 2026. This is the 13th transaction in the Polaris series. KEY RATING DRIVERS Specialist Assets: The mortgage pool comprises a mix of recently originated OO loans and a portion of BTL loans (26.1%), predominantly originated in 2021, as Pepper has only recently resumed BTL lending. Pepper has a manual approach to underwriting, which is typical of specialist lenders, focusing on borrowers who do not qualify on high street lenders' automated scorecard criteria. Transaction Adjustment: Arrears performance data are weaker than at high street prime lenders as expected, given the complex target market of the originator. The mortgage pool is 18.2% composed of loans where the borrower has a county court judgement (CCJ), of which around 10.9% have a balance of greater than GBP1,000. About 70% of the pool is from Pepper's strongest products - '36' or '48' - representing the number of months since the last CCJ/default, but the rest consists of products with more recent borrower CCJs/defaults. Shared ownership mortgages account for 7% of the pool. Fitch has applied a transaction adjustment of 1.25x to the foreclosure frequency (FF) to reflect the product mix and historical performance. In line with that for other specialist lenders, Fitch has increased the FF for self-employed borrowers to the OO sub-pool with verified income to 30%, instead of the 20% increase typically applied under the UK RMBS Rating Criteria. Revolving Risk Mitigated: A nine-month revolving period will permit the purchase of new assets to the portfolio with available principal funds after the initial funding of a liquidity reserve fund. Fitch considers the replenishment criteria and portfolio eligibility triggers to mitigate any material risk of deterioration in portfolio credit quality. Fitch has also applied in its asset analysis a 2% haircut to valuations to reflect the migration of risk attributes towards the prescribed limits. Product Switches Drive Excess Spread: The assets in the portfolio earn higher interest rates than typical prime mortgage loans. The current weighted average (WA) interest rate is currently 5.2%, but Fitch expects this to increase to 6.1% in 2027, as loans originated in 2021 will end their initial fixed-rate period. The level of excess spread is reduced by the ability of the transaction to retain product switches: up to 25% of the original balance of the loans excluding prefunded loans (expected to bet GBP136 million) can be retained after a product switch. The minimum interest rate of the product switches is at a level that produces a post-swap margin of 2%. Prepayment Increases Captured: The point at which the loans are scheduled to revert from a fixed rate to the relevant follow-on rate will likely determine when prepayments will occur. Fitch has therefore applied an alternative high prepayment stress that tracks the fixed-rate reversion profile (including retained product switches) of the pool. The prepayment rate applied is floored at the high prepayment rate assumptions produced by Fitch's analytical model ResiGlobal (UK) and capped at 40% a year. Fixed Interest Rate Swap Schedule: The transaction features a fixed-to-floating interest rate swap to hedge the interest rate risk between the fixed-rate mortgage assets and the SONIA-linked notes. The swap has a defined notional schedule which incorporates an element of prepayment that increases with time. In Fitch's cash flow modelling, the combination of high prepayments and decreasing interest rates leads to the transaction being over-hedged with swap payments senior to note interest. Prefunding: There was an initial over-issuance of approximately 12% of the notes. These additional funds can be used to purchase additional assets until the first interest payment date. Fitch believes the conditions for the permitted pool of prefunded loans mitigate the risk of a material deterioration in the credit quality of the asset pool. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by changes in market conditions and the economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce the credit enhancement available to the notes. In addition, unexpected declines in recoveries could result in lower net proceeds, which may make certain notes susceptible to negative rating action, depending on the extent of the decline in recoveries. Fitch found that a 15% rise in the weighted average (WA) FF and a 15% decrease in the weighted average recovery rate (WARR) would result in model-implied downgrades of up to three notches each for the class A, B, C and E notes, and two notches each for the class D and X1 notes. The sensitivity will result in the downgrade of the class F and X2 notes to the distressed rating category. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Stable-to-improved asset performance driven by stable delinquencies and defaults would lead to increasing credit enhancement and, potentially, upgrades. Fitch found that a 15% decrease in the WAFF and a 15% increase in the WARR would imply model-implied upgrades of two notches each for the class B, C, X1 and X2 notes and three notches each for the class D, E and F notes. There is no impact on the class B and X2 notes. The class A notes are already rated at the maximum 'AAAsf'. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Fitch was provided with Form ABS Due Diligence-15E as prepared by Deloitte LLP. The third-party due diligence described in Form 15E focused on the verification of loan data. Fitch considered this information in its analysis and it did not have an effect on Fitch's analysis or conclusions. DATA ADEQUACY Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis. 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 The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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