260610.mbx

260610.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, June 10, 2026, Vol. 27, No. 115 Headlines D E N M A R K LIQTECH INTERNATIONAL: Inks Debt Cancellation Deal With Noteholders G E R M A N Y MAHLE GMBH: Moody's Affirms 'Ba2' CFR & Alters Outlook to Stable SAPHIRA HOLDINGS: Moody's Assigns 'B1' CFR, Outlook Stable I R E L A N D FIDELITY GRAND 2021-1: Moody's Cuts Rating on Cl. F Notes to Caa1 INVESCO EURO I: S&P Assigns B-(sf) Rating on Class F-R Notes NORTH WESTERLY VII: Moody's Cuts Rating on EUR12MM F Notes to B3 PENTA CLO 22: S&P Assigns B-(sf) Rating on Class F Notes PENTA CLO 6: Moody's Affirms B3 Rating on EUR12.5MM Class F Notes N E T H E R L A N D S E-MAC PROGRAM: S&P Affirms 'D (sf)' Rating on Class D Notes MAGELLAN DUTCH: Moody's Rates New Amended Secured Term Loan 'B3' S P A I N FERTIBERIA SARL: S&P Assigns 'B' ICR on Refinancing Transaction U N I T E D K I N G D O M CK CAPITAL: BTG Begbies Appointed as Joint Administrators CONAT ENTERPRISES: BTG Begbies Traynor Appointed as Administrators E-CARS GROUP: BTG Begbies Appointed as Joint Administrators E-CARS HOLDINGS: BTG Begbies Appointed as Joint Administrators ESG LEISURE: BTG Begbies Appointed as Joint Administrators MOLOSSUS BTL 2025-1: S&P Raises F-Dfrd Notes Rating to 'BB+(sf)' POLARIS 2026-2: S&P Assigns CCC(sf) Rating on Class X2-Dfrd Notes UK LOGISTICS 2026-2: S&P Assigns Prelim. BB(sf) Rating on E Notes - - - - - ============= D E N M A R K ============= LIQTECH INTERNATIONAL: Inks Debt Cancellation Deal With Noteholders ------------------------------------------------------------------- LiqTech International, Inc. announced in a regulatory filing that it entered into a Debt Cancellation Agreement with affiliates of Bleichroeder L.P., 21 April Fund, L.P., and 21 April Fund, Ltd.. As previously disclosed, the Company issued to the Note Holders an aggregate principal amount $6.0 million of senior promissory notes on June 22, 2022, as amended on October 13, 2023 and March 26, 2025. Pursuant to the terms of the Debt Cancellation Agreement, the Company and the Note Holders agreed that upon the closing of the Company's underwritten public offering pursuant to the Registration Statement on Form S-1 (File No. 333-296258) filed with the Securities Exchange Commission on May 27, 2026, as amended: (i) the Note Holders shall cancel $3.0 million of the Senior Promissory Notes in exchange for $3.0 million of shares of the Company's common stock at a deemed issuance price per share equal to the public offering price per share to be sold in the Offering and (ii) the Company shall pay the Note Holders in cash $3.0 million plus all interest accrued under the Senior Promissory Notes. After the transactions contemplated by the Debt Cancellation Agreement, the Senior Promissory Notes will no longer be outstanding. The Note Holders are entitled to resale registration rights under a registration rights agreement to be entered into upon the closing for the shares of common stock issuable pursuant to the Debt Cancellation Agreement. A full text copy of the Debt Cancellation Agreement is available at https://tinyurl.com/mn4pjyvx About LiqTech International Ballerup, Denmark-based LiqTech International, Inc. is a clean technology company that provides state-of-the-art gas and liquid purification products by manufacturing ceramic silicon carbide filters and membranes as well as developing industry-leading and fully automated filtration solutions and systems. Sadler, Gibb & Associates, LLC, based in Draper, Utah, and serving since 2018, included a "going concern" qualification in its report dated February 27, 2026, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, citing that Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. As of March 31, 2026, the Company had $24.95 million in total assets, $17.40 million in total liabilities, and $7.55 million in total equity. ============= G E R M A N Y ============= MAHLE GMBH: Moody's Affirms 'Ba2' CFR & Alters Outlook to Stable ---------------------------------------------------------------- Moody's Ratings has affirmed the Ba2 corporate family rating and Ba2-PD probability of default rating of the German automotive parts supplier MAHLE GmbH (MAHLE or the company). Concurrently, Moody's affirmed the Ba3 rating of the company's senior unsecured notes issued under the programme, the (P)Ba3 rating of the senior unsecured euro medium term note programme, and the Ba2 ratings of the guaranteed senior unsecured notes and the backed senior unsecured notes. The outlook has been changed to stable from negative. RATINGS RATIONALE The change in the outlook to stable reflects MAHLE's improved financial performance and credit metrics in 2025 and in the first quarter of 2026, supported by positive sales price effects, productivity improvements and cost cutting initiatives. These factors more than offset lower volumes in the company's core Western European and North American markets, increased input costs and adverse foreign currency effects. Moody's expectations of continued productivity enhancements and cost savings from restructuring should enable a further recovery of MAHLE's credit metrics to levels well in line with Moody's requirements for a Ba2 rating over the next 12 months. Despite a 3.6% year-over-year decline in group sales to EUR11.3 billion in 2025, MAHLE's Moody's adjusted EBIT margin improved to 3.1% from 2.1% in 2024, reflecting effective cost management, the ability to adjust pricing and the benefits of the company's "Back on Track" efficiency programme. This positive trend accelerated in the first quarter of 2026, where MAHLE's Moody's adjusted EBIT more than doubled to around EUR94 million from EUR38 million a year earlier, notwithstanding a further 4% year-over-year decline in quarterly sales to EUR2.7 billion, mainly driven by adverse currency translation effects. As a result, the company's key credit metrics for the last 12 months (LTM) ended March 2026 improved noticeably. On a Moody's adjusted basis, MAHLE's EBIT margin increased to 3.6%, in line with Moody's at least 3% requirement for a Ba2 rating, and retained cash flow (RCF) to net debt strengthened to 22%, well above Moody's 15% minimum guidance. Leverage in terms of Moody's adjusted gross debt to EBITDA (3.6x as of LTM Q1 2026) continues to slightly exceed Moody's expectations of below 3.5x for the Ba2 rating but should reach that level by year-end 2026. Key drivers of the expected improvement will be additional benefits from cost reduction and efficiency measures, as well as lower restructuring costs, more than offsetting sustained sluggish volumes on likely declining global light vehicle production and further rising input costs. Moody's notes that MAHLE's credit metrics for 2025 and LTM March 2026 include, for the first time, an adjustment for operating leases, following the company's initial disclosure of leasing expenses in its 2025 financial statements. The adjustment has a positive effect of around 0.2 percentage points on MAHLE's Moody's adjusted EBIT margin and reduces Moody's adjusted gross debt to EBITDA by approximately 0.1x. The affirmed ratings and the stable outlook also positively reflect MAHLE's size and scale as a global tier 1 automotive supplier, with EUR11.1 billion revenues as of LTM March 2026 and a diversified customer base; top three market positions in its main product categories of engine, filtration and thermal management systems; strategy to respond to the disruptive shift toward electrification in the auto industry; conservative financial policy, illustrated by a 1.3x net leverage ratio (company defined) and modest shareholder distributions; and good liquidity, supported by Moody's forecasts of positive Moody's adjusted free cash flow (FCF) in 2026. Factors that continue to constrain the ratings include MAHLE's exposure to the cyclicality of automotive production; relatively low profit margins, reflecting the highly competitive sector environment; significant investments into R&D and capital expenditure, especially for products for alternative drivetrain systems, constraining FCF generation; fairly high exposure to carbon transition risks; and execution risks and increased one-off costs in 2025 associated with intensified restructuring. RATIONALE FOR THE OUTLOOK The stable outlook reflects MAHLE's strengthened financial performance in 2025 and Q1 2026 and Moody's expectations of its credit metrics improving further to levels well in line with Moody's guidance for the Ba2 rating over the next 12 months, including Moody's adjusted debt/EBITDA of below 3.5x (3.6x as of LTM March 2026). LIQUIDITY MAHLE's liquidity is good. As of March 31, 2026, the company's cash sources included EUR879 million cash on the balance sheet, its largely undrawn EUR1.2 billion revolving credit facility (maturing in February 2029), and Moody's forecasts of annual cash flow from operations of over EUR500 million. These sources significantly exceed the company's cash needs over the next 12 months, including capital spending of about EUR400 million, Moody's EUR330 million working cash assumption (3% of group sales), dividend payments and short-term debt maturities. Moody's also expects the company to maintain ample capacity under financial covenants at all times. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's would consider an upgrade of the ratings, if MAHLE's EBIT margin exceeded 5%, gross debt to EBITDA reduces below 3.0x, and retained cash flow to net debt exceeded 20%; all on a Moody's-adjusted and sustainable basis. Moody's could downgrade the ratings, if MAHLE's EBIT margin fell below 3.0%, gross debt to EBITDA exceeded 3.5x, and retained cash flow to net debt weakened to below 15%; all on a Moody's-adjusted and sustainable basis. Likewise, a deterioration in MAHLE's liquidity would exert negative pressure on the rating. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Automotive Suppliers published in November 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPANY PROFILE MAHLE GmbH, headquartered in Stuttgart, Germany, is one of the top 30 global automotive parts suppliers. MAHLE's business segments are Thermal and Fluid Systems (accounting for 55% of group revenue in the 12 months through March 2026), Powertrain and Charging (34%) and Lifecycle and Mobility (11%). The company employs around 64,000 people and operates manufacturing sites in 127 locations worldwide. In the 12 months through March 2026, MAHLE generated revenues of around EUR11.1 billion and EBITDA of EUR800 million (7.2% margin). The company has been owned by the MAHLE Foundation since 1964 and has a 61% stake in MAHLE Metal Leve S.A., a publicly listed entity in Brazil with a market capitalization of around BRL4.5 billion (EUR765 million) as of May 25, 2026. SAPHIRA HOLDINGS: Moody's Assigns 'B1' CFR, Outlook Stable ---------------------------------------------------------- Moody's Ratings assigned a B1 corporate family rating and a B1-PD probability of default rating to Saphira Holdings SARL (Trench), the new top entity of Trench's restricted group. Concurrently, Moody's assigned B1 instrument ratings to the proposed EUR1,250 million backed senior secured first lien term loan (TL), EUR130 million guaranteed senior secured first lien multi-currency revolving credit facility (RCF) and EUR75 million guaranteed senior secured first lien multi-currency guarantee facility issued by Saphira Holdings SARL. Also, Moody's withdrew the B1 CFR and B1-PD PDR at Trench Group GmbH, the previous top entity of the restricted group. The outlook on Saphira Holdings SARL is stable, and the outlook on Trench Group GmbH remains stable. Trench will use the proceeds of the proposed EUR1,250 million TL to repay its outstanding EUR400 million senior secured first lien term loan B borrowed by Trench Group GmbH (EUR500 million nominal amount) and fund a EUR850 million dividend distribution. Moody's will withdraw the outstanding instrument ratings for the term loan and RCF at Trench Group GmbH after their extinguishment post transaction close. RATINGS RATIONALE The B1 CFR balances Trench's strong operating performance, supported by favorable industry tailwinds, against the sizable dividend recapitalization following a relatively short track record of strong trading. Trench benefits from significant investments to expand and modernize electricity grids to cover rising electricity demand and increasing grid complexity, particularly in the US and Europe. Growth in data centers and renewable generation further underpin the trends. Also, Trench's strong product portfolio, including high-voltage direct current (HVDC) & high-voltage alternating current (HVAC) products, expanding customer reach and progress as a standalone company support its performance. As a result, Trench's order backlog increased to EUR1.9 billion as of March 2026 from EUR1.0 billion as of September 2024, while revenue exceeded EUR1.0 billion. Moody's-adjusted EBITDA margin rose to 32% in the last 12 months to March 2026, from 27% in 2025, resulting in Moody's-adjusted EBITDA of EUR342 million. This compares with a Moody's-adjusted EBITDA margin of 12%-13% in FY2021-FY2023. That said, the dividend recapitalization will increase Moody's-adjusted debt by EUR0.9 billion to EUR1.4 billion, compared with EUR500 million at the initial rating assignment in February 2025. As a result, Moody's-adjusted gross leverage will increase to 4.0x (pro forma for the transaction) from 1.5x as of March 2026. Moody's views the size and pace of the re-leveraging transaction as aggressive. It leaves Trench with limited headroom to absorb a potential weakening in market conditions or profitability. However, Moody's takes comfort from the company's strong order backlog, continued solid end-market tailwinds, and improvements as a standalone company. In the B1 rating, Moody's expects Trench to reduce its Moody's-adjusted gross leverage below 4.0x already in fiscal 2026, while free cash flow (FCF) generation builds up towards 5% of debt in the reset capital structure in the next 12-18 months. Trench further benefits from its global sales force, well-invested production footprint, long-standing customer relationships, and good liquidity profile. The CFR is constrained by the company's limited track record of sustained strong performance and profitability, the potential moderation of current market tailwinds, high customer concentration, risks of capacity expansion exceeding demand, and the possibility of further shareholder distributions or re-leveraging transactions. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. ESG CONSIDERATIONS Governance considerations have been among primary drivers of this rating action, reflecting the increased debt amount after the sizeable dividend recapitalization. STABLE OUTLOOK Moody's expects Trench to continue benefiting from the benign market environment for grid infrastructure suppliers, reflected in further volume growth and sustained strong profitability, while order execution remains solid. This will reduce Moody's-adjusted debt/EBITDA to below 4.0x in fiscal 2026 and keep FCF/debt at around 5%. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Trench: -- successfully executes its capacity expansion plan and grows in scale while improving end-customer and end-market diversification; -- builds track record of earnings generation through the cycle at current solid profitability levels; -- improves Moody's-adjusted gross debt/EBITDA sustainably towards 3.0x; -- generates strong FCF as indicated by FCF/debt towards high single digit percentage levels, while liquidity remains good; -- and its owners commit towards financial policy and leverage targets consistent with these stronger credit metrics. The ratings could be downgraded if: -- Trench's Moody's-adjusted EBITA margin declines towards 20% reflective of weakening operating performance including market deterioration, loss of pricing power and inability to pass on cost inflation; -- the company's leverage sustainably exceeds 4.5x debt/EBITDA or interest cover falls towards 2.5x EBITA/interest; -- the company's FCF generation capacity deteriorates reflected in FCF/debt around low single percentage level or below on a sustained basis as well as weakening liquidity. More specifically, the rating could be downgraded if there is a continuation of re-leveraging transactions, which signal more shareholder-friendly financial policy and weigh on interest expenses, free cash flows and financial leverage. Especially at times of a cyclical downturn, this could bring Trench outside of Moody's quantitative expectations for the B1 rating. LIQUIDITY Trench's liquidity is good. It is supported by EUR79 million cash pro forma for the transaction and proposed undrawn EUR130 million RCF. Moody's expects Trench to generate positive FCF over the next 12-18 months, enabling it to cover its expansion program, working capital needs, minority dividends, and potential warranty payments with funds from operations. Moody's notes the potential for significant working capital volatility based on pre-payment schedules and project execution milestones, which Moody's expects the company to manage successfully. The RCF has a springing senior secured net leverage ratio covenant that will be set at 40% headroom to EBITDA if the facility is drawn above 40%. Moody's expects compliance with the covenant. STRUCTURAL CONSIDERATIONS Trench's proposed EUR1,250 million term loan, EUR130 million RCF and EUR75 million guarantee facility all issued at Saphira Holdings SARL rank pari passu and are rated in line with the CFR at B1. The TL is expected to mature in 2033, while the RCF and guarantee facility in 2032. The security of the instruments comprises mainly shares and intercompany receivables. Guarantors represent at least 80% of the consolidated EBITDA of the group and include only wholly-owned subsidiaries of Trench, thus excluding its Chinese JV THVS. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Manufacturing published in September 2025. The B1 CFR is two notches below the Ba2 scorecard indicated outcome for the last fiscal year ending September 2025. The two notch difference is mainly explained by the shareholder-friendly financial policy under the private equity ownership of Triton, also reflected in the current proposed sizeable debt-funded dividend distribution. COMPANY PROFILE Trench, headquartered in Berlin, Germany, is among the strong global players in manufacturing bushings, instrument transformers, and coils (BIC), which are applied in or around sub-stations, power transformers or generators to enable energy transmission. Trench employs around 3,000 people and operates 10 manufacturing plants. In the last twelve months to March 2026, Trench generated around EUR1.1 billion in revenue and company-adjusted EBITDA of EUR351 million. The company was carved out from Siemens Energy AG (Baa1 positive) and acquired by Triton in March 2024. COVENANTS Moody's have reviewed the marketing draft terms for the new credit facilities. Notable terms include the following: Guarantor coverage will be at least 80% of consolidated EBITDA, determined in accordance with the agreement. Only wholly-owned subsidiaries representing more than 5% of consolidated EBITDA and incorporated in Austria, Canada, Germany, Luxembourg and the US are required to provide guarantees and security. Security will be granted over key shares, material intercompany receivables and bank accounts. Incremental facilities are permitted up to the greater of EUR360 million and 100% of EBITDA plus unlimited amounts if the senior secured net leverage ratio (SSNLR) does not exceed opening SSNLR. Unlimited restricted payments and permitted investments are permitted if the net leverage ratio does not exceed opening net leverage. Asset sale proceeds are only required to be applied in full where SSNLR exceeds opening SSNLR. Prepayment upon a change of control is not required if: (i) SSNLR does not exceed opening SSNLR by 0.5x, (ii) the new structure has a 30% equity contribution, and (iii) the change of control occurs within 48 months of the closing date. Adjustments to consolidated EBITDA include the full run rate of cost savings and synergies, capped at 25% of EBITDA and anticipated to be realizable within 24 months. The proposed terms, and the final terms may be materially different. ============= I R E L A N D ============= FIDELITY GRAND 2021-1: Moody's Cuts Rating on Cl. F Notes to Caa1 ----------------------------------------------------------------- Moody's Ratings has downgraded the rating on the following notes issued by Fidelity Grand Harbour CLO 2021-1 DAC: EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Downgraded to Caa1 (sf); previously on Dec 21, 2021 Definitive Rating Assigned B3 (sf) Moody's have also affirmed the ratings on the following notes: EUR244,000,000 Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Dec 21, 2021 Definitive Rating Assigned Aaa (sf) EUR34,000,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Affirmed Aa2 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Aa2 (sf) EUR10,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Affirmed Aa2 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Aa2 (sf) EUR28,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed A2 (sf); previously on Dec 21, 2021 Definitive Rating Assigned A2 (sf) EUR25,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Baa3 (sf) EUR20,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Ba3 (sf) Fidelity Grand Harbour CLO 2021-1 DAC, issued in December 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by FIL Investments International. The transaction's reinvestment period will end in July 2026. RATINGS RATIONALE The rating downgrade on the Class F notes is primarily a result of continued deterioration in the Class F over-collateralisation (OC) ratio due to loss of par. The OC ratios of the rated notes have deteriorated over the last 12 month following further loss of par. According to the trustee report dated May 2026[1] the Class A/B, Class C, Class D, Class E and Class F ratios are reported at 134.29%, 122.39%, 113.42%, 107.13% and 103.69% compared to May 2025[2] levels of 136.23%, 124.16%, 115.06%, 108.68% and 105.19%, respectively. The affirmations on the ratings on the Class A, Class B-1, Class B-2, Class C, Class D and Class E notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR386.5m Defaulted Securities: EUR2.9m Diversity Score: 47 Weighted Average Rating Factor (WARF): 3001 Weighted Average Life (WAL): 4.22 years Weighted Average Spread (WAS): 3.55% Weighted Average Coupon (WAC): 3.52% Weighted Average Recovery Rate (WARR): 44.29% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: Once reaching the end of the reinvestment period in July 2026, the main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. INVESCO EURO I: S&P Assigns B-(sf) Rating on Class F-R Notes ------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Invesco Euro CLO I DAC's class X, A-R, B-R, C-R, D-R, E-R, F-R notes. At closing, the issuer has unrated subordinated notes outstanding from the existing transaction and also issued additional subordinated notes. Subject to an extraordinary resolution from the existing subordinated noteholders, both the existing and the additional subordinated notes will be subject to an exchange for EUR24.94 million new subordinated notes. This transaction is a reset of the already existing transaction, which we did not rate. The existing classes of notes were redeemed with the proceeds from the issuance of the replacement notes. The reinvestment period will be approximately 4.5 years, while the non-call period will be 1.5 years after closing. Under the transaction documents, the rated notes will pay quarterly interest unless there is a frequency switch event. Following this, the notes will switch to semiannual payment. The ratings assigned to the notes reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings weighted-average rating factor 2,805.18 Default rate dispersion 535.66 Weighted-average life (years) 4.36 Obligor diversity measure 133.53 Industry diversity measure 21.19 Regional diversity measure 1.24 Weighted-average life (years) extended to cover the length of the reinvestment period 4.5 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 Number of performing obligors 146 Portfolio weighted-average rating derived from S&P's CDO evaluator 146 'CCC' category rated assets (%) 2.86 Target 'AAA' weighted-average recovery (%) 36.03 Actual weighted-average spread net of floors (%) 3.68 Actual weighted-average coupon (%) 3.63 The transaction also features a principal redemption mechanism for the class F notes (turbo redemption). Through the turbo redemption, 20% of the remaining interest proceeds available before equity distribution are used to pay down the principal on the class F notes. S&P has not given credit to turbo redemption in our cash flow analysis, given the senior payments' position in the waterfall and their ability to divert interest proceeds to purchase workout loans and bankruptcy exchanges. Rationale S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread of 3.55%, the covenanted weighted-average coupon of 4%, and the target weighted-average recovery rate. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R to E-R notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from the effective date, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes." The class X, A-R, and F-R notes could withstand stresses commensurate with the assigned ratings. S&P said, "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our ratings are commensurate with the available credit enhancement for all rated classes of notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class X to E-R notes, based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R Notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector." Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in S&P's rating analysis to account for any ESG-related risks or opportunities. Invesco Euro CLO I DAC is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Invesco CLO Equity Fund 6 LLC manages the transaction. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate X AAA (sf) 5.00 N/A Three/six-month EURIBOR plus 0.93% A-R AAA (sf) 248.00 38.00 Three/six-month EURIBOR plus 1.38% B-R AA (sf) 40.00 28.00 Three/six-month EURIBOR plus 2.10% C-R A (sf) 24.00 22.00 Three/six-month EURIBOR plus 2.70% D-R BBB- (sf) 28.00 15.00 Three/six-month EURIBOR plus 4.00% E-R BB- (sf) 17.00 10.75 Three/six-month EURIBOR plus 6.86% F-R B- (sf) 12.00 7.75 Three/six-month EURIBOR plus 7.43% Sub notes NR 24.94 N/ N/A *The ratings assigned to the class X, A-R, and B-R notes address timely interest and ultimate principal payments. S&P's ratings address ultimate interest and principal payments on the rest of the other rated notes. The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. NORTH WESTERLY VII: Moody's Cuts Rating on EUR12MM F Notes to B3 ---------------------------------------------------------------- Moody's Ratings has taken a variety of rating actions on the following notes issued by North Westerly VII ESG CLO DAC: EUR27,500,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Jun 11, 2021 Definitive Rating Assigned Aa2 (sf) EUR12,500,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Jun 11, 2021 Definitive Rating Assigned Aa2 (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Downgraded to B3 (sf); previously on Jun 11, 2021 Definitive Rating Assigned B2 (sf) Moody's have also affirmed the ratings on the following notes: EUR248,000,000 (Current outstanding amount EUR247,861,548) Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Jun 11, 2021 Definitive Rating Assigned Aaa (sf) EUR28,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed A2 (sf); previously on Jun 11, 2021 Definitive Rating Assigned A2 (sf) EUR24,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Jun 11, 2021 Definitive Rating Assigned Baa3 (sf) EUR20,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba2 (sf); previously on Jun 11, 2021 Definitive Rating Assigned Ba2 (sf) North Westerly VII ESG CLO DAC, issued in June 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is jointly managed by Aegon Asset Management UK plc and North Westerly Holding BV. The transaction's reinvestment period ended in November 2025. RATINGS RATIONALE The rating upgrades on the Class B-1 and B-2 notes are primarily a result of the benefit of the transaction having reached the end of the reinvestment period in November 2025. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. The rating downgrade on the Class F notes is primarily a result of continued deterioration in over-collateralisation ratios due to par loss. The over-collateralisation ratios of the rated notes have deteriorated over the last 6 months following further loss of par. According to the trustee report dated May 2026[1] the Class F OC ratios are reported at 105.0%, compared to November 2025[2] levels of 106.50%, respectively. Moody's notes that the May 2026 principal payments are not reflected in the reported OC ratios. The affirmations on the ratings on the Class A, Class C, Class D and Class E notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR392.2m Defaulted Securities: EUR5.1m Diversity Score: 51 Weighted Average Rating Factor (WARF): 3125 Weighted Average Life (WAL): 3.59 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.66% Weighted Average Coupon (WAC): 3.84% Weighted Average Recovery Rate (WARR): 43.47% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. -- Other collateral quality metrics: Because the deal can reinvest, the manager can erode the collateral quality metrics' buffers against the covenant levels. Moody's analysed the impact of assuming the worse of reported and covenanted values for weighted average rating factor, weighted average spread, weighted average coupon and diversity score. However, as part of the base case, Moody's considered spread and coupon levels higher than the covenant levels because of the large difference between the reported and covenant levels. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. PENTA CLO 22: S&P Assigns B-(sf) Rating on Class F Notes -------------------------------------------------------- S&P Global Ratings assigned credit ratings to Penta CLO 22 DAC's A and B-Loans and class A, B, C, D, E, and F notes. At closing, the issuer also issued unrated class Z notes and subordinated notes. The portfolio's reinvestment period will end approximately 4.6 years after closing, while the noncall period will end 1.6 years after closing. Under the transaction documents, the rated notes and loans will pay quarterly interest unless a frequency switch event occurs. Following this, the notes and loans will switch to semiannual payments. The ratings assigned to the notes and loans reflect our assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. --- The collateral manager's experienced team, which can affect the performance of the rated notes and loan through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,747.63 Default rate dispersion 488.33 Weighted-average life (years) 4.68 Obligor diversity measure 128.59 Industry diversity measure 19.98 Regional diversity measure 1.30 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.44 Target 'AAA' weighted-average recovery (%) 35.58 Target weighted-average coupon (%) 4.82 Target weighted-average spread (net of floors; %) 3.49 Rating rationale S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR450 million target par amount, the covenanted weighted-average spread (3.43%), and the covenanted weighted-average coupon (4.50%) as indicated by the collateral manager. We used the covenanted weighted-average recovery rates for all rated notes. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios, for each liability rating category. "Our credit and cash flow analysis indicates that the available credit enhancement for the B Loan and class B to E notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO is still in its reinvestment period until Jan. 15, 2031, during which the transaction's credit risk profile could deteriorate, we capped the assigned ratings on these notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class F notes could withstand stresses commensurate with a lower rating. However, we applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes." The ratings uplift for the class F notes reflects several key factors, including: -- Their available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recently issued CLOs. -- S&P said, "Our model generated break-even default rate at the 'B-' rating level of 23.76% (for a portfolio with a weighted-average life of 4.68 years), versus if we were to consider a long-term sustainable default rate of 3.2% for 4.68 years, which would result in a target default rate of 14.98%." -- S&P does not believe that there is a one-in-two chance of this tranche defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. -- Following this analysis, S&P considers that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' rating. -- Under S&P's structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. -- The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under S&P's current counterparty criteria. -- The transaction's legal structure and framework is bankruptcy remote, in line with S&P's legal criteria. S&P said, "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for the A and B Loans and class A to F notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have included the sensitivity of the ratings on the class A to E notes and A and B Loans, based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit or limit assets from being related to certain industries. Since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Penta CLO 22 DAC is a European cash flow CLO securitization of a revolving pool, comprising mainly euro-denominated leveraged loans and bonds. The transaction is a broadly syndicated CLO managed by Partners Group CLO Advisers LP. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 136.00 38.00 Three/six-month EURIBOR plus 1.30% A Loan AAA (sf) 143.00 38.00 Three/six-month EURIBOR plus 1.30% B AA (sf) 8.35 27.26 Three/six-month EURIBOR plus 2.00% B Loan AA (sf) 40.00 27.26 Three/six-month EURIBOR plus 2.00% C A (sf) 25.90 21.50 Three/six-month EURIBOR plus 2.30% D BBB- (sf) 32.60 14.26 Three/six-month EURIBOR plus 3.30% E BB- (sf) 20.25 9.76 Three/six-month EURIBOR plus 5.50% F B- (sf) 14.65 6.50 Three/six-month EURIBOR plus 8.60% Z NR 5.00 N/A N/A Sub notes NR 49.20 N/A N/A *The ratings assigned to the A and B Loans and class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. PENTA CLO 6: Moody's Affirms B3 Rating on EUR12.5MM Class F Notes ----------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Penta CLO 6 Designated Activity Company: EUR27,000,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Jul 26, 2021 Assigned Aa2 (sf) EUR12,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Jul 26, 2021 Assigned Aa2 (sf) EUR24,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Upgraded to A1 (sf); previously on Jul 26, 2021 Assigned A2 (sf) Moody's have also affirmed the ratings on the following notes: EUR248,000,000 (Current outstanding amount EUR226,578,248) Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Jul 26, 2021 Assigned Aaa (sf) EUR28,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Jul 26, 2021 Assigned Baa3 (sf) EUR20,500,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Jul 26, 2021 Assigned Ba3 (sf) EUR12,500,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed B3 (sf); previously on Jul 26, 2021 Assigned B3 (sf) Penta CLO 6 Designated Activity Company, issued in July 2019 and refinanced in July 2021 is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Partners Group (UK) Management Ltd. The transaction's reinvestment period ended in January 2026. RATINGS RATIONALE The rating upgrades on the Class B-1, Class B-2 and Class C notes are primarily a result of the deleveraging of the Class A senior notes following amortisation of the underlying portfolio since the payment date in Jan 2026. The affirmations on the ratings on the Class A, Class D, Class E and Class F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A notes have paid down by approximately EUR21.4million 8.64% in the last 9 months. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated April 2026[1] the Class A/B, Class C, Class D and Class E OC ratios are reported at 135.42%, 124.97%, 114.65% and 108.11% compared to July 2025[2] levels of 136.84%, 126.28%, 115.85% and 109.24%, respectively. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR364,989,911 Defaulted Securities: EUR4,700,000 Diversity Score: 52 Weighted Average Rating Factor (WARF): 2970 Weighted Average Life (WAL): 4.23 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.56% Weighted Average Coupon (WAC): 4.05% Weighted Average Recovery Rate (WARR): 43.32% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices.] Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. ===================== N E T H E R L A N D S ===================== E-MAC PROGRAM: S&P Affirms 'D (sf)' Rating on Class D Notes ----------------------------------------------------------- S&P Global Ratings lowered to 'BBB (sf)' from 'A+ (sf)', to 'D (sf)' from 'B- (sf)', and to 'D (sf)' from 'CC (sf)' its credit ratings on E-MAC Program III B.V. Compartment NL 2008-II's class A2, B, and C notes, respectively. At the same time, S&P affirmed its 'D (sf)' rating on the class D notes. The notes remain vulnerable to rising fees, especially since the liquidity facility was fully exhausted on the July 2025 interest payment date (IPD). Fixed fees in the transaction continue to be high year-on-year. The fees at each IPD have large variations, such as EUR18,631 in January 2026 and EUR53,230 in April 2026. S&P said, "Over the past few years, we have not received any clarity about the reason for the rising fees and whether this trend is likely to continue. Lower pool granularity continues to affect interest collections, with one loan in arrears leading to total loan-level arrears of 2.44%. We previously lowered our ratings in this transaction in October 2025." S&P said, "In the April 2026 investor report, we observe no senior interest being paid on the class C and D notes, while there is only a partial payment of EUR46,947 on the class B notes. We therefore lowered our ratings on the class B and C notes to 'D (sf)'. We affirmed our 'D (sf)' rating on the class D notes, as no senior interest has been paid since April 2025. "The class A2 notes are paying timely senior interest in full. As part of our scenario analysis, which includes testing various stressed fee and interest collections in the coming year, the class A2 notes have adequate protection. However, changing economic conditions or changing circumstances are more likely to weaken the capacity to meet timely interest on the notes. For example, on a given IPD where there are higher fees combined with lower-than-expected interest collections, this could lead to an interest payment shortfall on the class A2 notes. The absence of the liquidity facility to absorb volatile fee levels also makes the notes less resilient. Therefore, we lowered to 'BBB (sf)' from 'A+ (sf)' our rating on the class A2 notes." The swap counterparty in the transaction is NatWest Markets N.V. Based on the combination of the replacement commitment and the collateral posting framework, the maximum potential rating supported by the swap counterparty in this transaction is 'AA'. All other rating-dependent counterparties do not constrain S&P's ratings on the notes. E-MAC Program III Compartment NL 2008-II is a Dutch RMBS transaction backed by Dutch residential mortgages originated by CMIS Nederland (previously GMAC-RFC Nederland). MAGELLAN DUTCH: Moody's Rates New Amended Secured Term Loan 'B3' ---------------------------------------------------------------- Moody's Ratings has assigned B3 ratings to the proposed amended and extended senior secured term loan B and the senior secured revolving credit facility (RCF) due in March 2030 and September 2029, respectively and borrowed by Magellan Dutch BidCo BV, the top entity of the restricted group (Mediq or the company) and co-borrowed by Mediq B.V. Mediq's B3 long-term corporate family rating (CFR), the B3-PD probability of default rating (PDR) are unaffected. The stable outlook is also unaffected. The proposed transaction seeks to extend the maturity of the existing senior secured term loan B to March 2030 from the current maturity of March 2028. Concurrently, the company intends to extend the maturity of the RCF to September 2029 from September 2027. Overall, Moody's views the transaction as leverage neutral, while also noting its benefits in extending upcoming maturities. RATINGS RATIONALE The B3 CFR of Mediq continues to reflect the company's solid market position in the highly fragmented European medical products distribution market. The ratings are further supported by improved credit metrics in 2025, which are expected to continue to strengthen in 2026, due to the defensive nature of Mediq's product portfolio and favourable long-term trends such as population ageing and the rising prevalence of chronic diseases, supporting volume growth. The ratings are constrained by Mediq's still high Moody's-adjusted leverage of 7.2x as of December 31, 2025 and highly competitive nature of the medical products distribution market. It also reflects negative free cash flow (FCF) in 2025, which Moody's expects to turn slightly positive over the next 12 to 18 months on the back of improving, the track record of material exceptional costs which has weighed on profitability, and the risk of debt-funded acquisitions that could delay deleveraging. The B3 rating is weakly positioned currently driven by constrained credit metrics. LIQUIDITY Mediq's liquidity is adequate, supported by EUR67 million of cash on balance sheet as of December 2025 and a EUR100 million senior secured revolving credit facility, which is expected to be fully undrawn pro forma for the A&E transaction. This is complemented by an expected return to positive free cash flow generation within the next 12–18 months. Pro forma for the A&E, the senior secured revolving credit facility will mature in September 2029, while the senior secured term loan B will mature in March 2030. STRUCTURAL CONSIDERATIONS The new EUR670 million senior secured Term Loan B and the EUR100 million senior secured revolving credit facility are pari passu and rated B3, in line with the CFR, in the absence of any significant liabilities ranking ahead or behind. COVENANTS Guarantor coverage will be at least 80% of consolidated EBITDA. Material subsidiaries are companies representing 5% or more of consolidated EBITDA. Entities incorporated in excluded jurisdictions, and entities unable to provide guarantees under the agreed security principles, are excluded from both the numerator and denominator. Guarantors with negative EBITDA are excluded from the numerator. Security will be granted over key shares, bank accounts and intra-group receivables, including over subsidiaries incorporated in the Netherlands, Denmark, Luxembourg, Finland, Germany, Norway, Sweden and England and Wales. Incremental facilities are permitted up to the greater of EUR145 million and 100% of LTM EBITDA. Unlimited pari passu debt is permitted if the senior secured net leverage ratio (SSNLR) is less than or equal to 4.75x, or if the ratio is not made worse for acquisition or acquired debt. Unlimited debt that does not rank pari passu, including subordinated debt, is permitted if the fixed charge coverage ratio (FCCR) is not less than 2.00x, or if the ratio is not made worse for acquisition or acquired debt. Debt of non-obligors incurred under the freebie and ratio debt baskets and contribution debt is capped at the greater of EUR60 million and 40% of LTM EBITDA. Unlimited restricted payments are permitted if the consolidated total net leverage ratio (NLR) is less than or equal to 4.40x, or if the NLR is less than or equal to 5.25x and the payment is funded solely from the Available Amount or CNI Growth Amount. Unlimited junior debt payments are permitted if the SSNLR is less than or equal to 4.50x, or if the SSNLR is less than or equal to 4.75x and the payment is funded entirely from the Available Amount or CNI Growth Amount. Unlimited restricted investments are permitted if the NLR is less than or equal to 5.25x, or if funded from the Available Amount, excluding Permitted Financial Indebtedness, or CNI Growth Amount. Asset sale proceeds are subject to 100% mandatory prepayment where the NLR is above 4.85x, 50% mandatory prepayment where the NLR is less than or equal to 4.85x but above 4.35x, and 0% mandatory prepayment where the NLR is less than or equal to 4.35x. Includes a portability test on change of control subject to an SSNLR of not more than 4.75x, a 40% equity investment test and eligible investor requirements, within 24 months after the Extension Effective Date. Adjustments to consolidated EBITDA include the full run rate of cost savings, operating expense reductions, operating improvements and synergies arising from actions expected to be taken, capped at 25% of consolidated pro forma EBITDA and believed to be realizable within 24 months of the relevant event. RATIONALE FOR STABLE OUTLOOK The stable outlook reflects Moody's expectations that the company will continue to growing its revenue, both organically and inorganically via acquisitions, increase its profitability and reduce its one-off costs in the next 12 to 18 months, which will allow it to reach credit metrics that are more in line with the B3 rating, while maintaining an at least adequate liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward momentum on the ratings could develop if Mediq maintains positive organic revenue growth and there is substantial improvement in its profitability. This improvement should lead to more conservative sustainable capital structure and credit metrics. Quantitively, Mediq's ratings could be upgraded if leverage, as measured by Moody's-adjusted debt/EBITDA, were to be sustained below 6.0x, Moody's-adjusted FCF/debt were to increase towards 5% and EBITA/interest coverage were to increase towards 2.0x, sustainably. An upgrade would also require the absence of any re-leveraging transaction. Mediq's ratings could be downgraded if the company fails to grow its revenue organically and to further improve its margins. Quantitatively, downward pressure could arise if Moody's-adjusted gross debt/EBITDA remains above 7.0x for a prolonged period; Moody's-adjusted EBITA/interest expense deteriorates below 1.0x; Moody's-adjusted FCF/debt remains sustainably negative; or liquidity weakens. Pressure on the ratings could also occur following large debt-financed acquisitions or shareholder distributions. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Distribution and Supply Chain Services published in November 2025. COMPANY PROFILE Mediq was established in 1899 as a cooperative venture of pharmacists based in Utrecht, the Netherlands. Over the years, Mediq has grown to become one of the largest companies in medical product and device distribution, as well as the provision of associated care service, employing over 2,600 individuals, including a team of more than 240 nurses. The company's operations span 13 European countries, with a significant presence in the Benelux region, Germany, Switzerland, the Nordics and the UK. Since 2013, Mediq has been owned by funds managed and advised by Advent. ========= S P A I N ========= FERTIBERIA SARL: S&P Assigns 'B' ICR on Refinancing Transaction --------------------------------------------------------------- S&P Global Ratings assigned its 'B' long-term issuer credit rating to Fertiberia S.a.r.l.'s intermediate parent company, Fertiberia S.a.r.l., and its 'B' issue rating to the EUR300 million senior secured bond, with a '4' recovery rating (recovery range: 30%-50%; rounded estimate: 45%). The stable outlook reflects our expectation of EBITDA gradually improving over the next 12 months, driven by lower one-off costs and a progressively higher contribution from the bioscience segment. Fertiberia, which generated about EUR60 million in S&P Global Ratings-adjusted EBITDA in 2025, issued EUR300 million in senior secured bonds to repay existing debt and for general corporate purposes, alongside a EUR100 million undrawn revolving credit facility (RCF). S&P anticipates pro forma adjusted debt to EBITDA of 4.6x-5.1x in 2026, reflecting the new capital structure, improving to 4.5x-5.0x in 2027 thanks to more supportive nitrogen markets and expected improvements in adjusted EBITDA, and a shift from constrained free operating cash flow (FOCF) in 2026 to positive in 2027. Fertiberia has refinanced its existing capital structure. The group refinanced its existing debt of EUR175 million with new senior secured bonds of EUR300 million, of which EUR50 million is held on its own account and may be placed in the market later. This accompanies the issuance of a new senior secured RCF of EUR100 million, which remained undrawn at the close of the transaction and will support liquidity. Fertiberia intends to use the cash overfunding to support the expansion of its bioscience and fertigation segments via organic and external growth. S&P Global Ratings excludes the existing shareholder loan from our adjusted debt and coverage metrics because we expect the instrument would act as loss-absorbing capital given its subordination to the senior secured bonds. Dividend distribution is permitted if the net leverage (as per the company's definition) is below 2.0x--the marketed leverage at issuance. S&P said, "Nevertheless, we understand that dividend distribution is not the priority of the Triton Partners, and we assume no dividend in our base case. We also note that no proceeds from the transaction have been distributed to the sponsor." S&P said, "We anticipate that following the transaction, financial metrics will improve thanks to rising EBITDA, despite higher debt. The transaction resulted in an increase in senior secured debt of about EUR75 million. We expect EUR75 million-EUR85 million EBITDA in 2026, resulting in adjusted gross debt to EBITDA of 4.6x-5.1x on a pro forma basis. This compares with our previous expectation of about 5.1x for 2025 before the transaction. That said, we expect stable EBITDA and minimal one-off costs to lead to stable adjusted debt to EBITDA in 2026. From 2027, we expect debt to EBITDA to gradually decrease to 4.4x-4.9x and approach 4.0x by 2028." Fertiberia's business risk profile is constrained by its smaller geographical footprint, scale, and narrower scope compared with peers. Most of Fertiberia's revenue stems from one class of products--nitrogen-based fertilizers used in agriculture production. Fertiberia generates most of its revenue in a single geographic region, the Iberian Peninsula, about 51% in Spain and 13% in Portugal. Only 11% of sales are generated outside of the eurozone. Another constraining factor in our business risk assessment is the company's small size and highly concentrated asset base. Fertiberia is significantly smaller than other European fertilizer producers, with about EUR1.085 billion of revenue in 2025, compared with $8.1 billion for OCP S.A. and $15.6 billion for Yara International ASA. While Fertiberia faces high production‑concentration risk because its ammonia output depends on only two manufacturing sites, creating potential bottlenecks, the company's strong geographical footprint, coastal import access, and substantial ammonia storage capacity provide meaningful mitigation and support a solid overall supply capability. In comparison with other rated peers, Fertiberia displays an adjusted EBITDA margin below average. In 2025, its EBITDA margin was only 5.5%, well below the margin that S&P expects for nitrogen-based fertilizer producers. Yara reported an adjusted EBITDA margin of about 16.5%, while Nitrogenmuvek Zrt. reported a margin of 9.4%. S&P said, "We forecast a gradual improvement in Fertiberia's margin toward about 8.5% by 2028 thanks to lower one-off costs and higher EBITDA, however it is likely to remain below the average of its peers. "We understand that volatile profitability and cash flow reflect industry cyclicality and the company's sensitivity to an increase in natural gas prices, a decrease in fertilizer prices, and extended plant outages. We factor in the high volatility of earnings and cash flows in the cyclical fertilizer industry due to significant fertilizer price swings and potential large movements in gas prices. Fertiberia's earnings volatility is higher than most of its peers', due to its relatively small size and limited diversification. About 25% of Fertiberia's sales are from the industrial end-market, which remains a cyclical market with subdued activity in first-half 2026. Fertiberia produces 50% of its ammonia needs and is exposed to gas price volatility since the other 50% is bought on the spot market. The company does not have the ability to switch between 0% and 100% own ammonia production depending on what is more profitable. Fertiberia only has two production sites located in Spain, leaving it exposed to European energy costs in its ammonia production. These are key differences with more diversified fertilizer producers that can fully adapt their make or buy strategy and decide to produce in a region with lower energy costs (for example, the U.S.) to generate higher margins. "We think that Fertiberia benefits from a leading position in its domestic market. Fertiberia is the leading fertilizer producer in the Iberian Peninsula, with a 52% market share in Portugal and 22% in Spain, surpassing competitors such as ICL Group Ltd. and Fertinagro. The company enjoys strong brand recognition in its domestic markets, supported by longstanding local operations, with most of its production sites having been in operation since the 1970s and 1980s. This is further underpinned by a comprehensive operational footprint across the peninsula. However, the group exhibits a degree of asset concentration, with 12 out of its 15 sites located in Spain and Portugal. In addition, its position as a price taker limits its ability to pass through cost increases, while its focus on the relatively small Iberian market constrains diversification and growth prospects. "We expect that Fertiberia will focus on expanding its bioscience segment. The estimated EUR65 million of excess cash will be used to support this expansion through both organic initiatives and selective external growth. In addition, Fertiberia retains the option to place up to EUR50 million of senior secured bonds currently held on its own account to further support its strategy. Bioscience products should generate higher margins than traditional nitrogen-based products and should therefore contribute to a gradual improvement in overall profitability. These products are also expected to enhance diversification and reduce earnings volatility. However, bioscience products' contribution is likely to remain limited in the medium term, with the majority of EBITDA derived from nitrogen-based products. Fertiberia is also developing green ammonia production, which offers higher margin potential. Nevertheless, we think that output should remain in the low single digits as a percentage of total ammonia production by 2030. "We expect Fertiberia's earnings to rise, reflecting organic growth, increasing profitability, and lower one-off costs. Under our base-case scenario, the company's revenue will decline by about 3% in 2026, due to the current geopolitical tensions. We forecast significant demand volatility in 2026. We expect Fertiberia's adjusted EBITDA to remain stable compared with 2025 at EUR85 million-EUR95 million EBITDA in 2026; however, we forecast lower one-off costs of about EUR10 million compared to about EUR31 million in 2025. There is upside potential for our base case in 2026, depending on the length of the Middle East war and how fertilizer producers benefit from high gas prices and potential supply chain disruption. From 2026, Fertiberia should benefit from its Project One transformation program launched at the end of 2024. The purpose of the program is to convert commercial and industrial improvements into sustained EBITDA growth. We expect most related one-off cost to have been incurred in 2025. From 2027, we forecast 1%-3% revenue growth, with profitability improving thanks to material progress on Project One. We forecast adjusted EBITDA will reach EUR82 million-EUR92 million in 2027 and above EUR95 million in 2028. This should translate to an adjusted EBITDA margin of 7.0%-8.0% in 2026, increasing to above 8.5% by 2028. "We forecast constrained FOCF for Fertiberia in 2026. FOCF should turn positive in 2027 as profitability improves. The company needs recurring maintenance capital expenditure (capex) of EUR20 million-EUR30 million to operate. In addition, it has special projects to increase capex, such as developing the bioscience segment or a new concentrated nitric acid (CAN) line for about EUR46 million between 2026 and 2030. We understand that growth capex is discretionary and can be revised down if the company underperforms its EBITDA target. We forecast total capex of about EUR40 million in 2026 and EUR50 million in 2027. This, combined with about EUR30 million in forecast cash interest payments and moderate working capital inflow of about EUR15 million, will result in neutral FOCF in 2026. We expect positive FOCF in 2027 and 2028, driven by higher EBITDA and a progressive easing of growth capex. We forecast funds from operations (FFO) cash interest coverage to be comfortably above 2.0x in 2026, improving to above 3.0x in 2027. "The stable outlook reflects our expectation of EBITDA gradually improving over the next 12 months, driven by lower one-off costs and a progressively higher contribution from the bioscience segment. As a result, adjusted debt to EBITDA should improve to 4.6x-5.1x in 2026. We also expect the company to maintain FFO cash interest coverage above 2.0x, a comfortable liquidity buffer with a long-dated maturity profile, and that shareholder remuneration via shareholder loan interest and principal repayments will remain flexible and dependent on business conditions. "We could lower our rating if the company's adjusted debt to EBITDA deteriorates to above 6.0x, with no prospect of a swift improvement; FFO cash interest coverage weakens to below 2.0x; FOCF turns negative leading to a weakening in liquidity; or financial policy becomes more aggressive, possibly due to debt-funded acquisitions or shareholder returns. "We could raise our rating if Fertiberia develops a track record of improved profitability and reduced volatility in credit metrics over the next 12 months; generates comfortably positive FOCF; improves leverage; weighted average gross debt to EBITDA remains sustainably below 5.0x; and Fertiberia and its owners are committed to keeping its credit metrics at these levels." =========================== U N I T E D K I N G D O M =========================== CK CAPITAL: BTG Begbies Appointed as Joint Administrators --------------------------------------------------------- CK Capital Management Ltd was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court Number CR-2026-003959. Andrew Andronikou and Jack Caten, both of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on May 20, 2026. The company specialized in the sale of motor vehicles. Its registered office is Sterling House, Fulbourne Road, Walthamstow, London, E17 4EE. Its principal trading addresses are Sterling House, Fulbourne Road, Walthamstow, London, E17 4EE and Spaces, Solent Business Park, 4500 Parkway, Whiteley, Fareham, PO15 7AZ. The Joint Administrators can be contacted at: Andrew Andronikou Jack Caten BTG Begbies Traynor (London) LLP Level 33, One Canada Square London E14 5AB For further information, contact: Contact: Chloe Henshaw Email: Chloe.Henshaw@btguk.com Tel: 020 7516 1500 BTG Begbies Traynor (London) LLP CONAT ENTERPRISES: BTG Begbies Traynor Appointed as Administrators ------------------------------------------------------------------ Conat Enterprises Ltd was placed into administration in the High Court of Justice, Chancery Division, Companies Court, Court Number CR-2026-003958. Andrew Andronikou and Jack Caten, both of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on May 20, 2026. The company specialized in the sale of motor vehicles. Its registered office is Sterling House, Fulbourne Road, Walthamstow, London, E17 4EE. Its principal trading addresses are Sterling House, Fulbourne Road, Walthamstow, London, E17 4EE and Spaces, Solent Business Park, 4500 Parkway, Whiteley, Fareham, PO15 7AZ. The Joint Administrators can be contacted at: Andrew Andronikou Jack Caten BTG Begbies Traynor (London) LLP Level 33, One Canada Square London E14 5AB For further information, contact: Contact: Chloe Henshaw Email: Chloe.Henshaw@btguk.com Tel: 020 7516 1500 BTG Begbies Traynor (London) LLP E-CARS GROUP: BTG Begbies Appointed as Joint Administrators ----------------------------------------------------------- E-Cars Group Limited was placed into administration in the High Court of Justice, Chancery Division, Companies Court, Court Number CR-2026-003991. Andrew Andronikou and Jack Caten, both of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on May 20, 2026. The company is a holding company. Its registered office and principal trading is Sterling House, Fulbourne Road, Walthamstow, London, E17 4EE. The Joint Administrators can be contacted at: Andrew Andronikou Jack Caten BTG Begbies Traynor (London) LLP Level 33, One Canada Square London E14 5AB For further information, contact: Contact: Chloe Henshaw Email: chloe.henshaw@btguk.com Tel: 020 7516 1500 BTG Begbies Traynor (London) LLP E-CARS HOLDINGS: BTG Begbies Appointed as Joint Administrators -------------------------------------------------------------- E-Cars Holdings Ltd was placed into administration in the High Court of Justice, Chancery Division, Companies Court, Court Number CR-2026-003956. Andrew Andronikou and Jack Caten, both of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on May 20, 2026. The company is a holding company. Its registered office and principal trading address is Sterling House, Fulbourne Road, Walthamstow, London, E17 4EE. The Joint Administrators can be contacted at: Andrew Andronikou Jack Caten BTG Begbies Traynor (London) LLP Level 33 One Canada Square London E14 5AB For further information, contact: Contact: Chloe Henshaw Email: Chloe.Henshaw@btguk.com Tel: 020 7516 1500 BTG Begbies Traynor (London) LLP ESG LEISURE: BTG Begbies Appointed as Joint Administrators ---------------------------------------------------------- ESG Leisure Limited was placed into administration in the High Courts of Justice, Business and Property Courts in Bristol, Insolvency and Companies List (ChD), Court Number CR2026-BRS000066. Neil Frank Vinnicombe and Paul Wood, both of BTG Begbies Traynor (Central) LLP, were appointed as Joint Administrators on May 19, 2026. The company specialized in leisure, sports and recreation activities. Its registered office and principal trading address is Unit 2 Metz Way, Eastern Avenue, Gloucester, Gloucestershire, GL4 3DB. The Joint Administrators can be contacted at: Neil Frank Vinnicombe BTG Begbies Traynor (Central) LLP 11c Kingsmead Square Bath BA1 2AB -- and -- Paul Wood BTG Begbies Traynor (Central) LLP 3rd Floor Castlemead Lower Castle Street Bristol BS1 3AG For further information, contact: Andrew Dally Email: Andrew.Dally@btguk.com Tel: 01225 316040 BTG Begbies Traynor (Central) LLP MOLOSSUS BTL 2025-1: S&P Raises F-Dfrd Notes Rating to 'BB+(sf)' ---------------------------------------------------------------- S&P Global Ratings raised and removed from CreditWatch positive its credit ratings on Molossus BTL 2025-1 PLC's class B-Dfrd notes to 'AA+ (sf)' from 'AA- (sf)', class C-Dfrd notes to 'AA (sf)' from 'A (sf)', class D-Dfrd notes to 'A (sf)' from 'BBB+ (sf)', class E-Dfrd notes to 'BBB+ (sf)' from 'BB+ (sf)', and class F-Dfrd notes to 'BB+ (sf)' from 'BB- (sf)'. At the same time, S&P affirmed its 'AAA (sf)' rating on the class A notes. S&P said, "The rating actions follow our May 5, 2026, placement of our ratings on the class B-Dfrd to F-Dfrd notes on CreditWatch positive due to the implementation of updates to our U.K. sector and industry variables under our global RMBS criteria. They also reflect our full analysis of the most recent transaction information and the transaction's current structural features." The performance of the loans in the collateral pool has remained stable since closing in November 2025. As of February 2026, 30+ days arrears remained low at 0.69% (with no arrears of 90+ days), based on S&P's calculation methodology, and cumulative losses were zero. S&P said, "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in a decrease in the weighted-average foreclosure frequency (WAFF) at all rating levels, largely due to lower anchor default probabilities, lower loan-to-value (LTV) adjustments, the lower payment shock adjustment, and the lower loan purpose adjustment. "Our weighted-average loss severities (WALS) have decreased at all rating levels since closing, largely due to our lower overvaluation assessment for London and the South East where the assets are primarily concentrated, which has resulted in lower repossession market value declines." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 15.49 40.27 6.24 AA 10.28 35.11 3.61 A 7.60 25.88 1.97 BBB 5.07 20.50 1.04 BB 2.39 16.52 0.40 B 1.76 12.72 0.22 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P said, "The liquidity reserve fund and general reserve fund are both at their target levels. Excess spread is 0.06% based on our calculation, which considers stressed servicing fees. "We affirmed our 'AAA (sf)' rating on the class A notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with the rating. "Under our credit and cash flow analysis, the available credit enhancement for the class B-Dfrd to F-Dfrd notes is commensurate with higher ratings. We therefore raised our ratings on these classes of notes. Although the class D-Dfrd, E-Dfrd, and F-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, the ratings on these notes also reflect available credit enhancement, the relative position of the notes in the capital structure, and the lack of initial excess spread in the transaction. We therefore limited our upgrades of these classes of notes and resolved our CreditWatch positive placements of the class B-Dfrd to F-Dfrd ratings. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Macroeconomic forecasts and forward-looking analysis S&P said, "We expect U.K. inflation to remain above the Bank of England's 2% target in 2026, and we forecast a 2.6% year-on-year change in house prices in the fourth quarter of 2026. Given our current macroeconomic forecasts and forward-looking view of the U.K. residential mortgage market, we performed additional sensitivities relating to higher default levels due to increased arrears and extended recovery timings. The sensitivity analysis results indicate a deterioration consistent with our credit stability considerations in our rating definitions." Molossus BTL 2025-1 PLC is an RMBS securitization of buy-to-let mortgage loans secured over properties in the U.K. and originated by ColCap Financial UK Ltd. POLARIS 2026-2: S&P Assigns CCC(sf) Rating on Class X2-Dfrd Notes ----------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Polaris 2026-2 PLC's class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, F-Dfrd, X1-Dfrd, and X2-Dfrd notes. At closing, the issuer also issued unrated RC1 and RC2 residual certificates. The originator, UK Mortgage Lending Ltd., is a specialist buy-to-let and owner-occupied mortgage lender with 11 years' lending experience. S&P said, "This is the thirteenth Polaris transaction we have rated. The lender's mortgage book has performed relatively well to date, with total arrears generally below 6.0% for owner-occupied mortgages. Arrears have largely remained below our U.K. nonconforming index for originations after 2014. Of the loans in the pool, 6.96% are shared-ownership mortgages, which is lower than 8.78% in Polaris 2026-1 PLC. We considered this risk in our analysis." S&P said, "We stress the transaction's cash flows to test the credit and liquidity support provided by the assets, subordinated tranches, and reserves. Our ratings address the timely payment of interest and ultimate payment of principal on the class A notes, and they reflect the ultimate payment of interest and principal on all other rated notes. Our standard cash flow analysis indicates that the available credit enhancement for the class E-Dfrd and F-Dfrd notes is commensurate with higher ratings than those currently assigned. However, the ratings on these notes also reflect the notes' sensitivities to higher defaults, product switches, and prefunding, as well as to reduced excess spread from prepayments. "The class X1-Dfrd notes did not pass any of the rating scenario stresses in our driving cash flow run, which incorporates higher prepayments, but they passed our steady state scenarios. However, because our rating on these notes addresses ultimate payment of principal and interest, we believe default is not likely, as the notes can continue to defer interest until maturity. In line with our 'CCC' ratings criteria, the class X1-Dfrd notes are not dependent on favorable economic conditions to repay their obligations at maturity. We therefore assigned our 'B- (sf)' rating to these notes. "The class X2-Dfrd notes did not pass any of the rating scenario stresses in our driving cash flow run, which incorporates higher prepayments, or our steady state scenarios. However, because our ratings on these notes address ultimate payment of principal and interest, we believe default is not likely, as the notes can continue to defer interest until maturity. In line with our 'CCC' ratings criteria, the class X2-Dfrd notes are dependent on favorable economic conditions to repay their obligations at maturity. We therefore assigned our 'CCC (sf)' rating to these notes." The capital structure's application of principal proceeds is fully sequential, allowing credit enhancement to accumulate for the rated notes, and ensuring the capital structure's capacity to withstand performance shocks. The pool has a low current indexed loan-to-value (LTV) ratio of 65.99%, which is less likely to incur severe losses if the borrower defaults. The pool contains legacy loans from the Polaris 2022-1 transaction, which were paid down on the March 2026 payment date. Accounting for nearly 40% of the pool, these loans show minimal defaults and severe arrears (more than 12 months). The liquidity reserve fund is unfunded at closing and is expected to accumulate using available principal receipts until it reaches the higher of 1% of the class A or B-Dfrd notes' outstanding balances. As a result, the class A notes will remain exposed to liquidity risk until the reserve is fully funded. S&P said, "We considered this in our cash flow analysis, as well as the liquidity coverage available to each class. In our stressed cash flow modelling, the liquidity reserve fund is fully funded shortly after closing." The transaction features a short revolving period ending on the February 2027 interest payment date, intended to replace the legacy loans, which are approaching the end of their fixed interest rate period. The revolving portfolio condition mitigates the risk of deterioration in the pool's credit quality. Moreover, these borrowers may opt for a product switch, a risk S&P captured in its credit analysis. Pepper (UK) Ltd., the servicer, is an established and leading U.K. servicer, and S&P considers the team experienced, having serviced several transactions that it has rated. It has well-established, fully integrated servicing systems and policies and provides third-party servicing. The issuer is an English special-purpose entity, which S&P considers to be bankruptcy remote. It considers the legal structure and transaction documents to be in line with its legal criteria. Citibank N.A., London Branch is the transaction account provider, Barclays Bank PLC is the collection account provider, and Crédit Agricole Corporate and Investment Bank is the swap counterparty. The documented replacement mechanisms for the account providers and swap counterparty adequately mitigate the transaction's exposure to counterparty risk, in line with S&P's counterparty criteria. S&P said, "Since we assigned preliminary ratings, the transaction priced tighter than the margins that we initially assumed and the swap margin is lower. The prefunding mechanism is no longer applicable. The ratings on most of the classes of notes remain unaffected from the preliminary ratings we assigned, on account of tighter margins, apart from the class F-Dfrd notes that now pass at one notch higher at 'B+ (sf)'." Ratings Class Rating Class size (mil. GBP) A AAA (sf) 490.701 B-Dfrd* AA (sf) 21.809 C-Dfrd* A (sf) 20.446 D-Dfrd* BBB+ (sf) 5.452 E-Dfrd* BB (sf) 4.089 F-Dfrd* B+ (sf) 2.726 X1-Dfrd* B- (sf) 13.631 X2-Dfrd* CCC (sf) 2.726 RC1 Residual Certificates NR N/A RC2 Residual Certificates NR N/A *S&P's rating on this class considers the potential deferral of interest payments. NR--Not rated. N/A--Not applicable. UK LOGISTICS 2026-2: S&P Assigns Prelim. BB(sf) Rating on E Notes ----------------------------------------------------------------- S&P Global Ratings has assigned its preliminary credit ratings to UK Logistics 2026-2 DAC's class A, B, C, D, and E notes. The transaction is backed by a GBP648.8 million loan, which Barclays Bank PLC will advance to Mileway UK Finco III Ltd., a Blackstone-owned company, as part of its refinancing of a portfolio of U.K. logistics assets. The loan is secured on a U.K. portfolio of 184 predominantly logistic/industrial assets. The portfolio comprises 9.5 million square feet of total lettable area and is valued at GBP998.2 million as of December 2025. The loan-to-value (LTV) ratio is 65%. The loan has an initial term of two years with three one-year extension options, subject to the satisfaction of certain conditions being met. The loan is interest only and includes cash trap mechanisms triggered if the LTV ratio exceeds 80% or if the debt yield falls below 6.2%. Payments due under the loan facility agreement will primarily fund the issuer's interest and principal payments due under the notes. Under EU, U.K., and U.S. risk retention requirements, the issuer and the issuer lender (Barclays Bank PLC) will also enter into a GBP32.4 million issuer loan agreement (representing 5% of the securitized loan), which ranks pari passu to the notes. The issuer lender will advance the issuer loan to the issuer on the closing date. The issuer will apply the proceeds of this loan as partial consideration for the purchase of the securitized loan from the loan seller. S&P's preliminary ratings on the class A to E notes address UK Logistics 2026-2's ability to meet timely interest payments on the class A, B, C, and D notes, ultimate payment of interest on the class E notes, and payment of principal on the rated notes no later than the legal final maturity in August 2037. The legal final maturity date is initially August 2036. However, the servicer has the option to extend the loan one time by 12 months beyond the third extended loan maturity date in 2031. Should the servicer choose to exercise this option, the legal final maturity date will be automatically extended to August 2037. S&P's preliminary ratings on the notes reflect its assessment of the underlying loan's credit, cash flow, and legal characteristics, and an analysis of the transaction's counterparty and operational risks. Preliminary ratings Class Preliminary rating* Preliminary amount (GBP) A AAA (sf) 378,500,000 B AA (sf) 52,400,000 C A (sf) 61,600,000 D BBB- (sf) 73,300,000 E BB (sf) 50,598,000 *S&P's ratings address timely payment of interest on the class A, B, C, and D notes, ultimate payment of interest on the class E notes, and payment of principal not later than the legal final maturity date of Aug. 18, 2037 on all classes of notes. NR--Not rated. ********* 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. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. 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