260619.mbx

260619.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 Friday, June 19, 2026, Vol. 27, No. 122 Headlines F R A N C E AFFLELOU SAS: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ELIOR GROUP: Fitch Alters Outlook on 'BB-' LongTerm IDR to Negative G E R M A N Y ADLER PELZER: Fitch Keeps 'B-' LongTerm IDR on Watch Negative R U S S I A UZBEKTELECOM JSC: Fitch Alters Outlook on 'BB' IDR to Positive T U R K E Y TURKIYE CUMHURIYETI: Fitch Affirms BB- LongTerm IDRs TURKIYE HALK: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable TURKIYE VAKIFLAR: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ULKER BISKUVI: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable U N I T E D K I N G D O M ETHICAL POWER: Interpath Advisory Appointed as Joint Administrators EUROPEAN CARGO: Teneo Financial Appointed as Joint Administrators HAWKSMOOR CONSTRUCTION: Marshall Peters Appointed as Administrators MAJOR VEHICLE: FTS Recovery Appointed as Joint Administrators PERITUS CORPORATE: RMT Accountants Appointed as Administrators PERITUS PRIVATE: RMT Accountants Appointed as Joint Administrators WOODROW MERCER: Leonard Curtis Appointed as Joint Administrators X X X X X X X X [] BOOK REVIEW: LING The Rise, Fall, & Return of a Texas Titan - - - - - =========== F R A N C E =========== AFFLELOU SAS: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed Afflelou S.A.S.'s Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. Fitch has also affirmed Afflelou's EUR610 million senior secured fixed-rate notes at 'B+' with a Recovery Rating of 'RR3'. The affirmation reflects Fitch's expectation that Afflelou should continue deleveraging to below 5.5x by FY28 (year-end July), owing to improving margins and mildly positive like-for-like (LFL) revenue growth. The rating is also supported by its forecasts of positive free cash flow (FCF) generation across the rating horizon. The IDR continues to reflect Fitch's view of Afflelou's limited geographical and product diversification and moderately high financial leverage. This is balanced by the group's leading positions in its core markets, prospects of consistent revenue growth, supported by favourable demand trends, and a sustainably cash-generative business model. The Stable Outlook reflects its expectation of steady operating and credit metrics in a constructive and stable regulatory environment. Key Rating Drivers Consumer Confidence Weighs on Growth: Due to the Iran conflict, and the resulting weak 2H consumer sentiment in Afflelou's key markets, Fitch expects slow revenue growth in FY26. The war has a limited direct impact, including on the group's supply chain, but it has reignited concerns around inflationary pressure on consumer purchasing power, leading to more cautious spending patterns. Consequently, Fitch assumes only mildly growing LFL revenue in FY26-27. Profit Growth Aids Deleveraging: Fitch expects profit development to be supported by continuing steady growth prospects in the optical business, alongside the roll-out of hearing-aid sections in stores at limited additional cost. Fitch also assumes incremental margin benefits from an increase in own-brand sales, growth in communication fees earned from the franchisee partners and efficient supplier management (FY26 supplier negotiations are expected to result in an operating margin improvement of around 50bp). This margin accretion should lead to gradual EBITDAR growth and deleveraging to below 5.5x by FY28. Positive FCF Generation: Fitch expects Afflelou to maintain healthy EBITDA margins of above 20%, supporting steady cash flow generation. Fitch projects annual FCF between EUR10-15 million over the rating horizon, limited by a higher dividend burden to support the management incentive plan and interest payable by Afflelou PIKCO Limited on the shareholder loan. The positive FCF should enable the company to rebuild its cash position. Resilient Business Model: Afflelou's business model combines the typical features of a retailer with a strong franchisor business, anchored in banner fees and wholesale distribution. At FYE25, over 96% of revenue was from prescription glasses (82%), contact lenses (6%) and hearing aids (8%). An ageing population and medical advancements for optical and hearing aid solutions support long-term demand. Store Numbers to Support Growth: Fitch forecasts that Afflelou will continue its cautious but steady pace of store growth, with 20-30 franchised stores additions to the network each year, of which about half will be in France. This increase in floor space should support growth in network sales by around 1% per year. Coupled with the expected LFL growth, average yearly network sales growth of around 2.0-2.5% seems achievable over the rating horizon. As capex is mostly incurred by franchisees, both for openings and renovations, it will remain low. Hearing Aids Support Margins: The contribution of hearing aids to network sales was around 8% in FY25. Afflelou has set a target of increasing it to around 10% by FY30. The favourable economics for store owners of installing a hearing aids corner, together with lower penetration, should continue to drive the growth in the number of corners (678 in January 2026 compared with 621 in January 2025). Fitch therefore expects a positive impact on operating leverage, which should continue to support profit margin improvement. Solid Number Three in France: Afflelou sits below Krys and Optic 2000 in the French market in terms of revenue and store count, but is ahead of Optical Center. Krys is the clear market leader. All four offer both optical and hearing aid services, with Optical Center having the largest hearing aid footprint, followed by Afflelou. In terms of store network model, Afflelou and Optical Center are franchises while Krys and Optic 2000 are cooperatives. Distinguishing themselves from their peers is a challenge for all four businesses, evidencing the degree of competition in France. Peer Analysis Afflelou's ratings reflect its healthcare products and retail distribution network, which is predominantly franchised with owned stores. A favourable reimbursement policy for vision products in France, covered by the state and mutual insurance policies, provides greater operational stability for Afflelou than conventional high street retailers, which face less predictable consumer behaviour and so are exposed to greater sales and earnings uncertainties. Afflelou is much smaller than WS Audiology A/S (B/Stable), a supplier of hearing aids, in terms of revenue and EBITDAR, and is less diversified geographically. This is mitigated by lower leverage and better FCF margins, adjusted for special dividends. Afflelou does not compete against Takko Holding Luxembourg 2 S.à.r.l. (B/Stable) and is smaller, but it is more resilient given the non-discretionary nature of its sales. Both Afflelou and Mobilux Group SCA (B+/Stable) operate in the French market, with the former earning higher profit margins and being more resilient to spending patterns but having higher leverage by around two turns. Fitch’s Key Rating-Case Assumptions - Network sales growth of 2.1-2.5% per year - Annual revenue growth of 1.1-2.2% - Store network growth of 1.5-2.0%, driven by the opening of franchises. The number of directly owned and operated locations expected to slowly decline - EBITDA margin of 24.0% in FY26, growing by 10bp a year thereafter, largely driven by gross margin gains - Annual tax paid of EUR9-10 million - Annual working capital outflows of about EUR10 million - Capex of EUR22-25 million per year - Annual dividends of EUR21-24 million - No acquisitions Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): - Business and financial profile factors (assessment, relative importance): Management (b+, Moderate), Sector Characteristics (bb, Lower), Market and Competitive Positioning (bb-, Moderate), Diversification and Asset Quality (b, Higher), Company Operational Characteristics (bb-, Moderate), Profitability (bbb+, Moderate), Financial Structure (b, Higher), and Financial Flexibility (bb-, Moderate). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year FY25, 40% for the forecast year FY26 and 40% for the forecast year FY27. - B+ to CC considerations apply in its analysis and results in an adjustment of -1 notch. - The governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'a+' results in no adjustment. - The Standalone Credit Profile is 'b'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B'. Recovery Analysis The recovery analysis assumes that Afflelou would remain a going concern in a restructuring and that it would be reorganised rather than liquidated. This is because intangible assets, represented by its relationship with franchisees and suppliers, are key to the value of the company. Fitch has assumed a 10% administrative claim in the recovery analysis. Its going concern approach continues to assume a post-restructuring EBITDA of about EUR70 million, at which Afflelou's capital structure would become untenable. It also assumes corrective measures have been taken following a period of distress. Fitch assumes that distress would result from a contraction of the franchised network or adverse regulatory changes. Fitch assumes the company's EUR30 million revolving credit facility (RCF) is fully drawn in a default, and, as super senior, ranks ahead of its senior secured notes. Fitch continues to assume a distressed multiple of 5.5x. Its waterfall analysis generated a recovery computation in the 'RR3' band (indicating a B+ instrument rating) for the EUR610 million senior secured notes, which were increased by a EUR50 million tap finalised in June 2025. Fitch sees no rating headroom for further senior secured debt issue at the 'B+' instrument rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDAR gross leverage consistently above 6.2x due to debt-funded acquisitions and shareholder distributions or lack of deleveraging - EBITDAR fixed-charge coverage below 2.0x on a sustained basis - Post-dividend FCF margin falling towards the low-single digits or to neutral levels Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Financial policy supportive of EBITDAR gross leverage falling below 4.7x on a sustained basis - EBITDAR fixed-charge coverage consistently above 2.5x - Post-dividend FCF margin at or above 5% for an extended period Liquidity and Debt Structure Fitch anticipates that Afflelou will have EUR40 million of cash on balance sheet at FYE26 (after Fitch restricts EUR4 million of cash) and access to a fully undrawn EUR30 million RCF. Fitch expects Afflelou to generate positive FCF over 2026-2029. The company will have no refinancing needs until 2029. Fitch treats the EUR70 million holdco payment-in-kind notes issued by Afflelou PIKCO Limited as equity. Issuer Profile Afflelou operates as a franchisor in the optical and hearing aid product markets, primarily in France and Spain. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Afflelou. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Afflelou S.A.S. LT IDR B Affirmed B senior secured LT B+ Affirmed RR3 B+ ELIOR GROUP: Fitch Alters Outlook on 'BB-' LongTerm IDR to Negative ------------------------------------------------------------------- Fitch Ratings has revised the Outlook on Elior Group S.A.'s Long-Term Issuer Default Rating (IDR) to Negative from Stable and affirmed the IDR at 'BB-'. Fitch has also affirmed the senior unsecured rating at 'BB-' with a Recovery Rating of 'RR4'. The Negative Outlook reflects the risks of prolonged adverse impacts from challenges related to passing on operating cost increases and a delayed ramp-up of newly signed contracts. Fitch expects temporarily negative free cash flow (FCF) in FY26 (financial year ending September) and EBITDA leverage above 5.5x over FY26-FY27. The affirmation reflects Fitch's assumption that Elior could return to metrics commensurate with its 'b+' Standalone Credit Profile (SCP) by FY28, supported by phasing in a large new contract in FY27, low to mid-single-digit organic growth, continued efficiency measures, and higher operating leverage. Fitch applies a bottom-up approach under its Parent and Subsidiary Linkage Criteria, resulting in a one-notch uplift from Elior's SCP. Key Rating Drivers Weak 1H26 Performance: Elior lowered its guidance for FY26 to 1%-2% organic growth, from 3%-4% previously, and to a company-defined adjusted EBITA margin (excluding exceptionals) of around 3.0%, versus 3.5%-3.7% previously. The revision follows a weak 1H26 performance, reflecting negative net business trends with slower conversion of backlog in revenue, FX challenges and price increases that were insufficient to entirely offset rising costs. Elior also fully provisioned the expected loss on an on-board rail catering contract in Italy, which runs until April 2027. Subdued Profitability: After the Fitch-defined EBITDA margin improved to 4.1% in FY25 (FY24: 3.5%), Fitch forecasts a decline to 3.9% in FY26, mainly due to higher contract losses than acquisitions and cost increases that the company may not entirely pass on to customers. Fitch expects a mild recovery in FY27, supported by a large new contract starting at end-FY26 and discontinuing the unprofitable Italian contract. Fitch expects the margin reach 4.4% by FY29, driven by continued efficiency measures, a disciplined approach to pricing for renewals and higher operating leverage. FCF Affected by Investments: Fitch-defined FCF was 1.0% of revenue in FY25. Fitch expects it to be negative in FY26, given the combination of a softening EBITDA margin while capex temporarily rises to around 3% of sales to fund equipment for the implementation of new business contracts. From FY27 onwards, Fitch forecasts capex at 2% of revenue, supporting improving but still low FCF of toward 0.6% in FY29. Persistently neutral to negative FCF could weigh on the ratings. Leverage Peak; Deleveraging Expected: Fitch expected leverage to reduce to 5.3x when Fitch upgraded the rating in February 2026. Fitch now expects it will reach 6.5x in FY26 (FY25: 6.4x) and then gradually reduce to 5.6x in FY27 and 5.0x by FY29 through low single digit organic growth and profitability improvements. The company issued EUR150 million new senior notes in February 2026 and redeemed the EUR159 million notes due in July. This leaves the rating weakly positioned within the 'b+' SCP, with delivery of organic growth and margin improvement targets key to bringing leverage metrics more in line with the current rating. Robust Business Model: Elior's robust business model, reflecting its strong position in the French catering market, large contract base and diverse customer pool with low churn rates support its 'b+' SCP. Demand for outsourced food services and facilities management benefits from supportive long-term trends. Derichebourg Multi Services is more exposed to cyclicality but enhances business diversification from the catering business, representing 27% of FY25 revenue. Financial Policy Focuses on Deleveraging: Fitch factors into its rating analysis Elior's focus on deleveraging and on limiting dividend payments until net leverage (as calculated by company) falls below 3.0x. Fitch expects Derichebourg S.A. (BB+/Rating Watch Negative) to be supportive of this strategy, given the nature of its investments in Elior and despite the forthcoming disbursement for its recently announced acquisition of Scholz Recycling Group, which will lead to an increase in leverage and a potential downgrade. Evidence of a more aggressive financial policy that undermines the deleveraging of the business would put the ratings under pressure. Stronger Parent: Fitch applies a bottom-up assessment in accordance with its Parent and Subsidiary Linkage Criteria, reflecting the stronger parent versus weaker subsidiary. Fitch assesses Derichebourg's legal and operational incentives to support Elior as 'Low' and strategic incentive as 'Medium'. This reflects the material asset value Elior represents for Derichebourg, leading to a one-notch uplift from Elior's 'b+' SCP to its 'BB-' IDR. Limited Geographical Diversification: Elior's revenues are concentrated in Europe, at 78% of FY25 net sales. It has historically focused on the French market, with around half of its sales generated in the country. This concentration exposes Elior to downturns affecting the region and to contracts that do not carry full cost pass-through clauses. This concentration is mitigated by the diversity of end-markets, ranging across private businesses, healthcare providers and education companies. This provides some revenue and earnings stability across economic cycles. Strong Market Share; Revenue Visibility: Elior recently announced a delayed ramp-up of newly signed contracts. However, it continues to benefit from a strong share in its key French catering market of 22%. Elior has high retention rates (91.4% at March 2026), although lower than its peers, across its diversified customer base on multi-year contracts and with its top 10 customers, which accounted for 13% of FY25 total revenue. Peer Analysis Fitch compares Elior with CD&R and WSH Limited (B+/Stable). Elior has greater scale and better diversification, as WSH is focused on the UK but benefits from stronger profitability and FCF generation as well as higher organic growth. Elior also has a similar business profile to Sodexo SA (BBB+/Negative). The large rating difference is warranted by Elior's lower geographical diversification, much smaller scale and weaker credit metrics overall. Elior is mostly present in Europe (around 78% of its revenue), while Sodexo has a balanced presence across Europe (36% of FY25 revenue), North America (46%) and rest of the world (18%). Fitch revised Sodexo's Outlook to Negative in May 2026 following a weak 1H26 and actions taken to restore competitiveness that will temporarily increase leverage. Fitch expects Elior's leverage to be close to 6.5x in FY26 and forecast Sodexo's at 2.6x. Fitch also compares Elior with other business services providers such as Assemblin Caverion Group AB (B+/Positive). Elior's 'b+' SCP reflects a more balanced end-market, geographical mix, and deleveraging prospects while Assemblin Caverion benefits from lower leverage, below 4.5x at end 2025. Elior's 'BB-' IDR benefits from a one-notch uplift, due to the stronger parent, in accordance with Fitch's Parent-Subsidiary Linkage Criteria. Fitch’s Key Rating-Case Assumptions - Revenue growth of -0.5% in FY26 then low single digits through FY29' - EBITDA margins of 3.9% in FY26 then gradually rising to 4.4% by FY29 - Capex at 3% of revenue in FY26, then 2% over the forecast period - Working-capital inflow of 0.2% of revenue in FY26, then outflows of 0.1% to FY29 - Dividend payments of EUR10 million annually to FY29 - M&A spend of about EUR10 million annually to FY29 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb', Lower), sector characteristics ('bbb+', Lower), market and competitive positioning ('bb', Higher), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bbb-', Moderate), profitability ('b', Higher), financial structure ('b-', Higher), and financial flexibility ('bb', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year FY26, 40% for the forecast year FY27 and 40% for the forecast year FY28. B+ to CC considerations apply in its analysis and results in an adjustment of 1 notch. The governance assessment of 'good' has no impact. The operating environment assessment of 'a' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: Application of Fitch's Parent Subsidiary Linkage Rating Criteria results in a bottom up +1 approach. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A multi-notch downgrade of Derichebourg, or a weakening of strategic ties between Elior and Derichebourg that leads Fitch to assess Elior on a standalone basis. Fitch could revise Elior's SCP down on: - Loss of contracts that weakens Elior's competitive position in its main markets - EBITDA margins remaining below 4% - Gross debt/EBITDA sustained above 5.5x - EBITDA interest cover falling below 3.0x - FCF deteriorating toward neutral Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA margins sustained above 6% - Gross debt/EBITDA sustained below 4.5x - EBITDA interest cover rising above 4.0x - Retention rate improved to 95% - Mid-single-digit FCF margins Liquidity and Debt Structure Elior reported a cash position of EUR79 million at March 2026. In addition, it has access to a securitisation programme, which provides additional liquidity through receivables financing. Fitch restricts EUR30 million from reported cash for intra-year working capital fluctuations, resulting in Fitch-defined cash of EUR49 million at March 2026. Elior issued EUR150 million new senior notes in February 2026 and redeemed the EUR159 million notes due in July 2026. Its EUR650 million senior notes mature in March 2030. The company also has access to a EUR430 million revolving credit facility, of which EUR40 million was drawn at March 2026. In addition, it uses a commercial paper programme, under which EUR145 million was outstanding at March 2026. Issuer Profile Elior is an international contract catering and diversified services provider. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Elior Group S.A. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Elior Group S.A. LT IDR BB- Affirmed BB- senior unsecured LT BB- Affirmed RR4 BB- ============= G E R M A N Y ============= ADLER PELZER: Fitch Keeps 'B-' LongTerm IDR on Watch Negative ------------------------------------------------------------- Fitch Ratings has maintained Adler Pelzer Holding GmbH's (APG) Long-Term Issuer Default Rating (IDR) of 'B-' and senior secured notes' rating of 'B' on Rating Watch Negative (RWN). The Recovery Rating is 'RR3'. The RWN reflects pending refinancing of APG's core debt facilities. Fitch understands that APG has made substantial progress in refinancing its main debt facilities that are due in November 2026 (partially drawn EUR55 million revolving credit facility; RCF) and April 2027 (EUR400 million bond and EUR68 million term loan B; TLB). Fitch expects to resolve the RWN in July 2026 following completion. Failure to progress with the refinancing would lead to a downgrade. The ratings remain supported by APG's sustainable business model and recent performance that is broadly in line with its prior expectations, including higher EBIT margin at 4.7% in 2025 from 4.2% in 2024, and positive free cash flow (FCF). Fitch expects a steady margin for 2026 while FCF turns slightly negative to neutral, reflecting working capital and capex outflows. Key Rating Drivers Refinancing Ongoing: APG has been considering refinancing since 2H25, supported by banks, institutional investors and shareholders, with the latest market update in May 2026. It repaid part of its RCF drawings at end-2025 but continues to rely on the RCF (EUR22 million drawn) to fund net working capital swings and seasonal liquidity shortfalls. Fitch believes liquidity could come under pressure in the absence of a refinancing in the next few months. Fitch understands that APG has made substantial progress in refinancing its core debt facilities and Fitch expects it to complete in the coming weeks. High, but Declining, Leverage: Fitch-adjusted EBITDA leverage reached 3.8x at end-2025, down from 4.5x at end-2024, reflecting higher EBITDA and moderate gross debt reduction. Fitch expects EBITDA gross leverage to improve to below 3.5x from 2028. Deleveraging prospects depend on EBITDA growth, contingent on new project wins, operating leverage and efficiency and successful cost inflation pass-through mechanisms. Fitch does not expect significant debt repayment in its forecasts as cumulative 2026-2029 FCF generation will be only minimally positive. Volatile Cash Flow Generation: FCF generation turned positive in 2025, on higher EBITDA and net working capital (NWC) releases. APG's cash flow generation has historically been mostly negative, affected by NWC volatility, high interest paid and dividends to minorities. Fitch forecasts FCF will be modestly positive from 2028, on continued EBITDA improvement, similar interest rates on its new facilities and steady dividends to minorities of about EUR18 million, given several fully consolidated joint ventures (JVs) that are 51% controlled. Enhanced Operating Margins: APG's Fitch-adjusted EBIT margin increased to 4.7% in 2025 from 4.2% in 2024, despite lower revenue. The improvement reflected operational improvements across all regions, successful pass-through of material cost increases, and new projects with better margins. Fitch expects the EBIT margin to increase to 5.7% in 2029, supported by cost efficiencies and revenue growth returning from 2027, after a flat 2026 due to current macroeconomic uncertainties and negative FX impact. Sustainable Business Model: APG's business model remains well supported by the growing penetration of electric vehicles (EVs) and increasingly stringent comfort and regulatory requirements aimed at reducing both internal and external vehicle noise. Acoustic insulation is becoming even more critical in EVs, where the absence of internal combustion engine (ICE) noise makes other sounds more noticeable, increasing demand for advanced noise-dampening solutions. In addition, original equipment manufacturers (OEMs) and regulators continue to raise standards for passenger comfort and vehicle noise reduction, further underpinning demand for APG's products. Peer Analysis APG is the second smallest Fitch-rated auto supplier after TMD Friction Group GmbH (BB-/Stable). TMD and similarly rated US-based producers, such as Garrett Motion, Inc. (BB/Stable) and Tenneco LLC (B/Positive), benefit from more stable and profitable aftermarket business revenue, which APG lacks. APG's business profile is geographically well diversified but like Benteler International Austria GmbH (BB-/Stable), the focus on OEMs exposes the company to cyclical demand. APG's FCF generation improved in 2025 but remains at the lower end compared with peers with a history of volatility. This is primarily due to high interest payments, volatile NWC needs and dividends to minorities. The company's leverage profile aligns with the 'b' category according to its criteria for auto suppliers, with moderate prospects for continued deleveraging based on its forecasts. EBITDA leverage is higher than at Garrett, Tenneco and Benteler. Fitch’s Key Rating-Case Assumptions - Flat 2026 sales with mid-single digit increase thereafter - Fitch-adjusted EBIT margin trending towards 5.5% by 2028 supported by cost efficiencies and operating leverage - NWC outflow at 0.5% of sales on average from 2026-2030 - Capex at 3.6% of sales on average a year to 2026-2030 - No dividends to common shareholders; dividends to non-controlling interests around EUR18 million a year Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb', Lower), sector characteristics ('bb-', Moderate), market and competitive positioning ('b+', Moderate), diversification and asset quality ('bb-', Moderate), company operational characteristics ('bb', Moderate), profitability ('b+', Moderate), financial structure ('b', Higher), and financial flexibility ('ccc+', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. B+ to CC considerations apply in its analysis and results in an adjustment of 0 notch(es). The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'b-'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B-'. Recovery Analysis The recovery analysis anticipates that APG would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. Fitch has factored in a 10% administrative claim. Fitch projects a GC EBITDA of EUR120 million after restructuring, through a refocus of its operations on more profitable products and regions. Fitch also considers that OEMs might opt to transfer their contracts to more financially stable customers during APG's restructuring. To estimate APG's enterprise value after reorganisation, Fitch applied a multiple of 4.5x to the GC EBITDA. This multiplier reflects the company's technical expertise, established relationships with OEMs and strong market share, aligning with similar car suppliers that have a stable market position and larger critical mass. This value allocation in the liability waterfall results in a recovery corresponding to 'RR3' for the senior secured notes, supporting its rating one notch above the IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to continue progressing refinancing with expected completion in July 2026 - Material declines in liquidity Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Orderly refinancing of the financial facilities would support an affirmation - The ratings are on RWN and Fitch does not expect events that would lead to an upgrade Liquidity and Debt Structure APG reported EUR211 million of cash and cash equivalents at end-1Q26, equal to about 10% of annual turnover. Fitch estimates about EUR42 million are not readily accessible for debt repayment due to intra-year NWC swings, while about EUR40 million is restricted due to limited ownership over of cash held in fully consolidated but partially owned JVs. RCF drawings were about EUR22 million at end-1Q26, unchanged from end-2025. Most debt, including the RCF, bond and TLB, matures between November 2026 and April 2027, resulting in a concentrated maturity profile. APG's financial access is proving difficult, as it has been trying to refinance its debt since 2H25. Issuer Profile APG is a worldwide leader in design, engineering and manufacturing of acoustic and thermal components and systems for the automotive sector. Headquartered in Hagen, Germany, the company is present in 22 countries with 95 production facilities and 12 R&D centres. Sources of Information In accordance with Fitch's policies, the issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The Climate.VS for 2035 for APG is 50. APG currently derives most of its income from supplying acoustic and thermal components and systems to vehicles. Key risks arise from policies designed to phase out ICE vehicles. APG has long experience in EV product supply. The group's revenue and margins should start to benefit as demand from OEMs shifts to EV insulation components as due to the absence of engine noise, EVs have higher acoustic insulation requirement than similar ICE models. APG's rating incorporates its view that the company is unlikely to have lower revenue from this transition as it is already a supplier to EV manufacturers, traditional auto OEMs and new battery EV OEMs. Furthermore, as EVs have higher acoustic insulation and thermal management requirements, the transition will likely support APG's long-term growth. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Adler Pelzer Holding GmbH LT IDR B- Rating Watch Maintained B- senior secured LT B Rating Watch Maintained RR3 B =========== R U S S I A =========== UZBEKTELECOM JSC: Fitch Alters Outlook on 'BB' IDR to Positive -------------------------------------------------------------- Fitch Ratings has revised Uzbektelecom JSC's Outlook to Positive from Stable and affirmed all ratings. The rating action follows the revision of the Outlook on Uzbekistan's Long-Term IDRs to Positive from Stable on 3 June 2026 (see 'Fitch Revises Uzbekistan's Outlook to Positive; Affirms at 'BB'). The revision of the Outlook reflects the likely correlation of future rating actions with changes to the sovereign rating, given the strong likelihood of support from the state. Fitch continues to assess Uzbektelecom's Standalone Credit Profile (SCP) at 'bb-', one notch below the sovereign rating. The SCP reflects the company's market-leading position as the incumbent telecom operator in Uzbekistan. The company has a dominant position in the domestic fixed-line network market, a sustainable mobile market share and a growing customer base. This is balanced by the company's single market focus and the country's weak operating environment. Key Rating Drivers See the Rating Action Commentary (RAC) "Fitch Rates Uzbektelecom JSC 'BB'; Outlook Stable" dated 14 November 2025. Peer Analysis See the RAC referenced above. Fitch’s Key Rating-Case Assumptions See the RAC referenced above. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb-', Lower), sector characteristics ('bb+', Moderate), market and competitive positioning ('bb', Higher), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bbb+', Moderate), profitability ('bbb', Lower), financial structure ('bb-', Higher), and financial flexibility ('bb-', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. The governance assessment of 'good' has no impact. The operating environment assessment of 'b' results in an adjustment of -1 notch. The SCP is 'bb-'. To derive the Long-Term IDR: Application of Fitch's Government Related Entities Rating Criteria results in an equalised approach. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Negative sovereign rating action - Substantial weakening of links and support from the state - Material delays and/or cost overruns in network investment projects resulting in EBITDA net leverage above 3.8x on a sustained basis could be negative for SCP but not necessarily for the IDR Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive sovereign rating action while maintaining strong links with and support from the state - EBITDA net leverage below 3.0x on a sustained basis would be positive for the SCP but not necessarily for the IDR - Cash flow from operations less capex/gross debt trending sustainably above 7% would be positive for the SCP but not necessarily for the IDR Liquidity and Debt Structure See the RAC referenced above. Issuer Profile Uzbektelecom is the incumbent telecom operator in Uzbekistan, providing communications solutions and services to consumers, SMEs, public sector and to other communications providers. Public Ratings with Credit Linkage to other ratings Uzbektelecom's rating is linked to the sovereign rating of Uzbekistan. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Uzbektelecom. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Uzbektelecom JSC LT IDR BB Affirmed BB =========== T U R K E Y =========== TURKIYE CUMHURIYETI: Fitch Affirms BB- LongTerm IDRs ---------------------------------------------------- Fitch Ratings has affirmed Turkiye Cumhuriyeti Ziraat Bankasi Anonim Sirketi's (Ziraat) Long-Term Foreign-Currency (LTFC) and Long-Term Local-Currency (LTLC) Issuer Default Ratings (IDR) at 'BB-'. The Outlooks are Stable. Fitch has also affirmed Ziraat's Viability Rating (VR) at 'bb-'. Key Rating Drivers VR-Driven IDRs, Government Support: Ziraat's LT IDRs are driven by its VR and underpinned by potential government support. The VR reflects Ziraat's leading domestic franchise, but also its concentration of operations in Turkiye. It also considers the bank's reasonable asset quality and capitalisation, healthy profitability, and adequate foreign-currency (FC) liquidity. The Stable Outlooks on the IDRs reflect those on the sovereign rating and operating environment. The Short-Term (ST) IDRs of 'B' are the only possible option mapping to the LT IDRs in the 'BB' category. Iran Conflict Pressures Operating Environment: Fitch considers macroeconomic stability risks and external financing pressures to have risen following the outbreak of the Iran conflict. This led to a marked fall in Turkiye's international reserves since the start of the war. A prolonged conflict would likely pose greater challenges to banks' financial and risk profiles through higher-for-longer Turkish lira interest rates and inflation. Leading Domestic Franchise: Ziraat is a domestic systemically important bank (D-SIB) and the largest in Turkiye by assets with about 18% of banking sector assets and loans at end-1Q26 (bank-only data). It has a large customer base and the highest deposit market share in Turkiye at 19% at end-1Q26. The bank has a unique agricultural policy role (end-1Q26: 69% share of banking sector agricultural loans), providing subsidised loans and intermediating public funds. Asset-Quality Deterioration: The non-performing loans (NPL) ratio weakened to 2.0% at end-1Q26 (end-2025: 1.9%; end-2024: 1.3%) but remained below the sector average (2.7%). This is in spite of loans growth (8%) and collections and driven by higher NPL inflows (as is the case sector-wide). Total reserves coverage of NPLs was lower, though broadly in line with the sector average, at 130% (end-2025: 139%; end-2024: 221%). Fitch expects asset-quality deterioration to continue in 2026 and 2027 as inflows rise across all segments and forecast Ziraat's NPL ratio to increase to 2.5% by end-2026. Margin Expansion: The bank's operating profit declined slightly to a still healthy 4.4% of risk-weighted assets (RWAs) in 1Q26 (2025: 4.7%), reflecting still high swap costs and elevated impairment charges, notwithstanding lower cost of deposit funding and still high loan yields. Fitch forecasts operating profit to remain solid at about 3.7% in 2026, as margin expansion is delayed into late 2026, depending on the Iran war and related disruption. Earnings remain sensitive to the regulatory environment, including growth caps and high reserve requirements, and asset-quality weakening beyond its base case. Reasonable Capitalisation: Ziraat's common equity Tier 1 (CET1) ratio fell to 10.7% at end-1Q26 (end-2025: 13.2%, including forbearance) following the removal of regulatory forbearance on FC RWAs. Net of forbearance, Ziraat's CET1 ratio declined only 80bp, reflecting slightly weaker earnings and growth, and a one off operational RWA adjustment. The capital adequacy ratio (end-1Q26: 13.9%) is supported by USD500 million of Tier 2 debt and USD2.8 billion in additional Tier 1 debt. Its assessment also factors in ordinary support, given the record of state support. Fitch expects the CET1 ratio to remain fairly stable by end-2026 on still solid internal capital generation and slower growth. Mainly Deposit-Funded; Adequate FC Liquidity: Ziraat is largely deposit-funded (end-1Q26: 71% of non-equity funding). Deposit dollarisation (42% of customer deposits) remains high, creating risks for FC liquidity. Ziraat's fairly high FC wholesale funding (end-1Q26: 20% of non-equity funding) is mitigated by good access to international debt markets. Available FC liquid assets covered most of Ziraat's maturing FC debt over the next 12 months at end-1Q26. Government Support: Ziraat's Government Support Rating (GSR) is in line with the Turkish sovereign's LTFC IDR and considers the government's high propensity to provide support to the bank given its state ownership, systemic importance, policy role and the record of capital support. The GSR also reflects the moderate probability of support in FC being forthcoming from the sovereign, based on the sovereign's ability to provide support relative to the bank's size. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The LT IDRs of Ziraat would only be downgraded if its VR and GSR were simultaneously downgraded. Ziraat's VR is sensitive to a sovereign downgrade or to a weakening in the operating environment. The bank's VR could also be downgraded due to a material erosion of the bank's FC liquidity or capital buffers, most likely due to greater-than-expected asset-quality weakening, if not offset by government support. Ziraat's VR is also sensitive to potential government influence over management of the bank's balance sheet and particularly if this increases pressure on the bank's risk profile. The GSR is sensitive to a sovereign downgrade, but also to a change in the ability or propensity of the authorities to provide support. Ziraat's ST IDRs are sensitive to a multi-notch downgrade of its LT IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Turkiye's sovereign ratings would likely lead to similar actions on the bank's GSR and therefore its LT IDRs. A VR upgrade would require an upgrade of the sovereign rating, likely leading to an upward revision of the operating environment score, combined with the bank's stable financial profile. Ziraat's ST IDRs are sensitive to a multi-notch upgrade of its LT IDRs. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Ziraat's senior debt ratings are in line with its IDRs. Ziraat's subordinated notes' rating is notched down twice for loss severity from its 'bb-' VR anchor rating, in line with Fitch's criteria baseline approach. The National LT Rating of 'AA(tur)' is driven by Ziraat's standalone creditworthiness and its view of government support in LC, and is in line with that of other state-owned commercial banks. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Ziraat's senior unsecured debt ratings are primarily sensitive to changes in its IDRs. Ziraat's subordinated debt rating is primarily sensitive to a change in its VR. It is also sensitive to a revision in Fitch's assessment of loss severity and non-performance. The National Rating is sensitive to a change in the bank's creditworthiness in LC relative to that of other Turkish issuers. VR ADJUSTMENTS The operating environment score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): sovereign rating (negative). The business profile score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): business model (negative). Public Ratings with Credit Linkage to other ratings Ziraat has ratings that are linked to the Turkish sovereign ratings. ESG Considerations Ziraat's ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on the banks' credit profiles and is relevant to the banks' ratings in combination with other factors. In addition, Ziraat has an ESG Relevance Score of '4' for Governance Structure due to potential government influence over the board's effectiveness and management strategy in the challenging Turkish operating environment, which has a negative impact on the bank's credit profile and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Turkiye Cumhuriyeti Ziraat Bankasi Anonim Sirketi LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT AA(tur) Affirmed AA(tur) Viability bb- Affirmed bb- Government Support bb- Affirmed bb- senior unsecured LT BB- Affirmed BB- subordinated LT B Affirmed B senior unsecured ST B Affirmed B TURKIYE HALK: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has upgraded Turkiye Halk Bankasi A.S.'s (Halk) Viability Rating (VR) to 'b' from 'b-' and affirmed its Long-Term (LT) Issuer Default Ratings (IDRs) at 'BB-' with Stable Outlooks. The VR upgrade reflects the bank's improved business and risk profiles, after a legal case in the US regarding alleged Iran sanctions violations was concluded without punitive measures against the bank. Key Rating Drivers Government Support Drives IDRs: Halk's LT IDRs and National LT Rating are driven by potential support from Turkish authorities, as reflected in its 'bb-' Government Support Rating (GSR). The Stable Outlooks align with those on the sovereign IDRs. The Short-Term (ST) IDRs are the only option mapping to LT IDRs in the 'B' rating category. The bank's VR reflects its solid franchise, weak but improving profitability and capital buffers. Halk's GSR, which is in line with the sovereign's Long-Term Foreign-Currency (LTFC) IDR, reflects the government's high propensity to provide support, given Halk's policy role, the bank's systemic importance, state-related funding and record of capital support. The GSR also reflects the moderate probability of support in FC being forthcoming from the sovereign, given the government's reasonable FC reserves relative to the bank's size. Iran Conflict Increases Operating Challenges: Fitch considers macro-financial stability risks and external financing pressures to have risen following the outbreak of the Iran conflict. This has dampened the normalisation and strenghtening record of the country's monetary policy. A prolonged conflict would likely pose greater challenges to banks' financial and risk profiles through higher-for-longer lira interest rates and inflation. State-Owned Bank; Policy Role: Halk was Turkiye's fourth-largest bank by assets at end-1Q26, with a 9% market share. The bank has a policy role as the provider of state-subsidised co-operative loans to SMEs. The concentration of its operations in Turkiye's volatile operating environment and role in supporting government policy create risks to its business profile. Moderate Growth: Halk's loan growth accelerated above the sector average in 1Q26 to 9% (sector: 8%) after slower- than-sector average growth in 2025 (38%; sector: 45%), despite capital limitations. Fitch expects the bank's expansion to align with the sector average, given limitations posed by the bank's capitalisation and internal capital generation. Asset-Quality Risks: Halk's impaired loans ratio worsened to 4% at end-1Q26 (end-2025: 3.8%; end-2024: 2.1%), due to the worsening credit quality of unsecured retail lending and SME portfolios, in line with the sector. Asset-quality risks remain from its exposure to the Turkish operating environment, FC loans (32% at end-1Q26), seasoning risks and moderate Stage 2 loans (8.5%). Fitch forecasts the impaired loans ratio to increase to 4.5% in 2026. Weak but Improving Profitability: Halk had a weak operating profit of 2.4% of its risk-weighted assets (RWAs) at end-1Q26 (end-2025: 1.7%). This is driven by tight margins (net interest margin: 4.4%), high swap costs and impairment charges. Fitch expects the bank's operating profit/RWAs ratio to remain below the sector average due to tighter margins and lower CPI-linked yields, but to improve to 2.9% at end-2026 on the back of improving cost of funding. Thin Capital Buffers: Halk has thin capital buffers, with a common equity Tier 1 (CET1) ratio of 8.1% at end-1Q26 (2025: 8.6% excluding forbearances, Fitch estimate). Leverage is also high (tangible equity/tangible assets: 4.7%). Fitch factors ordinary support into its assessment of capitalisation due to the record of state support. Two FC-denominated additional Tier 1 debt issuance (totalling USD1 billion) provide a buffer against currency depreciation. Fitch expects the CET1 ratio to be 8.6% at end-2026, driven by slightly improved internal capital generation. Mainly Deposit-Funded: The bank relies on short-term, but stable, deposits (end-1Q26: 74% of funding). Deposit dollarisation is slightly lower than the sector's (37%). The bank has limited FC wholesale funding (11%, concentrated in FC bank deposits and repo funding), and Fitch expects access to external funding to improve, following the resolution of the legal case in the US. Fitch expects the gross loans/customer deposit ratio to remain around its current level of 74% at end-2026. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Halk's LT IDRs would be downgraded if its GSR is downgraded. This would result either from a weaker ability of the government to provide support, reflected in a sovereign downgrade, or a lower propensity to support. The VR could be downgraded on further weakening in capitalisation, for example, if the CET1 ratio weakens over a sustained period or if leverage increases further and timely capital support is not received. It could also be downgraded if a marked deterioration in the operating environment leads to material erosion in the bank's FC liquidity buffer. The ST IDRs are sensitive to a multi-notch downgrade of the LT IDRs. The National Rating is sensitive to a negative change in the bank's creditworthiness in local currency (LC) relative to that of other Turkish issuers. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Turkiye's sovereign ratings would likely lead to similar actions on the bank's GSR and therefore its LT IDRs. Halk's VR could be upgraded if the operating profitability and capital buffer improve materially, on a sustained basis, alongside stable asset quality metrics and liquidity buffer. The ST IDRs are sensitive to a multi-notch upgrade of the LT IDRs. The National Rating is sensitive to a positive change in the bank's creditworthiness in LC relative to that of other Turkish issuers. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The bank's LT IDRs (xgs) are driven by and hence in line with the bank's VR. The ST IDRs (xgs) are mapped to the bank's LT IDRs(xgs). OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The bank's LT IDRs (xgs) are sensitive to changes in the VR. The ST IDRs (xgs) are sensitive to changes in the bank's LT IDRs (xgs). VR ADJUSTMENTS The operating environment score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): sovereign rating (negative). The business profile score of 'b' is below the 'bbb' category implied score due to the following adjustment reason(s): management, governance and strategy (negative), and business model (negative). The asset quality score of 'b' is below the 'bb' category implied score due to the following adjustment reason(s): underwriting standards and growth (negative). The earnings and profitability score of 'b' is below the 'bb' category implied score due to the following adjustment reason(s): earnings stability (negative). The funding and liquidity score of 'b' is below the 'bb' category implied score due to the following adjustment reason(s): non-deposit funding (negative). Public Ratings with Credit Linkage to other ratings Halk's IDRs are driven by support from the Turkish authorities. ESG Considerations Halk's ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on Halk's credit profile and is relevant to the ratings in combination with other factors. Fitch has revised Halk's ESG Relevance Score for Governance Structure to '4' from '5', following the finalisation of the legal case in the US without punitive measures. It reflects potential government influence over the board's effectiveness and management strategy in the challenging Turkish operating environment, which has a negative impact on the bank's credit profiles and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Turkiye Halk Bankasi A.S. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT AA(tur) Affirmed AA(tur) Viability b Upgrade b- Government Support bb- Affirmed bb- LT IDR (xgs) B(xgs) Upgrade B-(xgs) ST IDR (xgs) B(xgs) Affirmed B(xgs) LC LT IDR (xgs) B(xgs) Upgrade B-(xgs) LC ST IDR (xgs) B(xgs) Affirmed B(xgs) TURKIYE VAKIFLAR: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Turkiye Vakiflar Bankasi T.A.O.'s (Vakifbank) Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) and Long-Term Local-Currency (LTLC) IDR at 'BB-'. The Outlooks on the IDRs are Stable. Fitch has also affirmed Vakifbank's Viability Rating (VR) at 'bb-'. Key Rating Drivers VR Drives IDRs; GSR Underpins: Vakifbank's Long-Term IDRs are driven by its Viability Rating (VR) and underpinned by potential government support, as reflected in its Government Support Rating (GSR). The Stable Outlook on the IDRs reflects that on the sovereign. The 'B' Short-Term IDRs are the only possible option mapping to the Long-Term IDRs in the 'BB' category. Vakifbank's VR considers the bank's strong domestic franchise and diversified business model as the second largest state-owned bank in Turkiye, reasonable asset quality and profitability, adequate FC liquidity and external market access. It also reflects below-sector average core capitalisation, higher risk profile and the concentration of its operations in Turkiye. The VR is one notch above the 'b+' implied VR, reflecting a positive adjustment for its business profile. Iran Conflict Pressures Operating Environment: Fitch considers macroeconomic stability risks and external financing pressures to have risen following the Iran conflict. This led to a marked fall in Turkiye's international reserves since the start of the war. A prolonged conflict would likely pose greater challenges to banks' financial and risk profiles through higher-for-longer lira interest rates and inflation. Strong Domestic Franchise: Vakifbank is the second-largest bank in Turkiye, accounting for 11% sector assets on an unconsolidated basis at end-1Q26 and is considered to be a domestic systemically important bank. Vakifbank's solid domestic franchise is underpinned by its wide geographical footprint and historical state affiliation. Operating Environment Risks: Vakifbank's risk profile is highly sensitive to the Turkish operating environment, given the concentration of its operations in the domestic market. Its assessment of its risk profile also considers the bank's role as a large state bank supporting Turkiye's economic policy. Impaired Loan Ratio Rising: Vakifbank's impaired loans (Stage 3) ratio continued to increase to 3.1% at end-1Q26 (end-2025: 2.9%; end-2024: 1.8%; sector: 2.7%) reflecting rising impaired loans, mainly from unsecured retail and SME lending, despite collections and limited write-downs. Fitch expects the impaired loans ratio to rise to 3.8% by end-2026 on still-high lira interest rates and inflation and slow GDP growth. Total loan loss allowances coverage of impaired loans decreased slightly (end-1Q26: 111.8%; end-2025: 113.6%). FC lending (end-1Q26: 38% of gross loans), sizeable Stage 2 loans (11.5%), loan concentration and seasoning also represent risks to asset quality. Reduced Profitability: Vakifbank's operating profit decreased to 2.7% of risk-weighted assets (RWAs) in 1Q26 (2025: 3.7%; sector: 4.6 %), as increased loan impairment charges (34% of pre-impairment operating profit), trading losses and inflation-driven pressure on operating costs offset improved net interest margins and sustained fee income generation. Fitch forecasts operating profit of 2.5% of RWAs in 2026 (excluding possible free provision reversals) due to delayed net interest margin expansion from lira rate cuts, now likely in 2H26, and potentially higher credit costs. Profitability remains sensitive to the regulatory environment. Below-Sector Average Core Capitalisation: Vakifbank's common equity Tier 1 (CET1) ratio, net of forbearance, decreased to 9.8% at end-1Q26, from 10.3% at end-2025, due mainly to higher operational risk, market and credit risk charges and adverse currency impact. Fitch expects the CET1 ratio to remain around these levels by end-2026 through internal capital generation. Leverage remains high, as reflected in an equity/assets ratio of 6.3% at end-1Q26 (sector: 8.7%). The Tier 1 capital ratio of 12.2% and total capital ratio of 14.3% are supported by FC-denominated additional Tier 1 (AT1) and Tier 2 debt respectively, which provides a partial hedge against lira depreciation. Capitalisation is underpinned by moderate pre-impairment operating profitability (1Q26: annualised 4.7% of average gross loans), full reserves coverage of impaired loans and limited free provisions (end-1Q26: TRY8 billion; 0.2% of RWAs) but is sensitive to lira depreciation, asset-quality risks and growth. High Wholesale Funding: Vakifbank is largely deposit-funded (end-1Q26: 68% of non-equity funding). FC deposits (32% of customer deposits; sector:41%) create risks to FC liquidity. FC wholesale funding accounted for 23% of non-equity funding at end-1Q26, exposing the bank to refinancing risk, although funding is reasonably diversified across sources and the bank has good access to funding markets. Government Support: Vakifbank's GSR is in line with the sovereign's LTFC IDR and considers the government's high propensity to provide support to the bank, given its state ownership, systemic importance, and record of capital support. The GSR also reflects the moderate probability of support in FC being forthcoming from the sovereign to the bank. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of Vakifbank's Long-Term IDRs would require a downgrade of both its VR and GSR. The VR is sensitive to a sovereign downgrade or to a weakening in the operating environment. The VR could also be downgraded due to a material erosion in capital and FC liquidity buffers, if not offset by government support, or a sustained deterioration in asset quality, resulting in a material decline in earnings. The VR is also sensitive to government influence over the management of the bank's balance sheet, particularly if this increases pressure on its risk profile. The GSR is primarily sensitive to a sovereign downgrade, but also to a change in the ability or propensity of the authorities to provide support. The Short-Term IDRs are sensitive to a multi-notch downgrade of the Long-Term IDRs. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Turkiye's Long-Term IDRs would likely lead to similar actions on the bank's GSR and therefore its Long-Term IDRs. A VR upgrade would require an upgrade of the sovereign rating, likely leading to an upward revision of the operating environment score, alongside a sustainable increase in the capitalisation buffer, improved earnings performance and strengthening in the risk profile relative to operating environment risks. The Short-Term IDRs are sensitive to a multi-notch upgrade of the Long-Term IDRs. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS Vakifbank's senior debt ratings are aligned with its IDRs. The Tier 2 notes are rated two notches below the bank's VR for loss severity, reflecting its expectation of poor recoveries in case of default, in line with Fitch criteria's baseline approach. Vakifbank's AT1 notes are rated three notches below its VR, comprising two notches for loss severity due to the notes' deep subordination, and one notch for incremental non-performance risk given their full discretionary, non-cumulative coupons. Fitch has used the bank's VR as the anchor rating as Fitch considers it to be the most appropriate measure of non-performance risk. In accordance with the Bank Rating Criteria, Fitch has applied three notches from Vakifbank's VR, instead of the baseline four notches, due to rating compression, as Vakifbank's VR is at the 'BB-' threshold. The 'AA(tur)' National Rating is driven by the bank's standalone credit worthiness and its view of government support in LC and is in line with other state-owned commercial banks'. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES Vakifbank's senior debt ratings are primarily sensitive to changes in its IDRs. The Tier 2 notes' rating is sensitive to a change in the VR. It is also sensitive to a revision in Fitch's assessment of potential loss severity in the event of non-performance. The rating of the AT1 notes is primarily sensitive to a change in Vakifbank's VR. The notes' rating is also sensitive to an unfavourable revision of Fitch's assessment of incremental non-performance risk. The National Rating is sensitive to changes in the LTLC IDR and the bank's creditworthiness relative to other Turkish issuers'. VR ADJUSTMENTS The operating environment score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): sovereign rating (negative). The business profile score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): business model (negative). The asset quality scores of 'b+' is below the 'bb' category implied scores due to the following adjustment reason: underwriting standards and growth (negative). Public Ratings with Credit Linkage to other ratings Vakifbank has ratings that are linked to the Turkish sovereign ratings. ESG Considerations Vakifbank's ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by regulatory burden and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on Vakifbank's credit profile and is relevant to the ratings in combination with other factors. In addition, Vakifbank has an ESG Relevance Scores of '4' for Governance Structure due to potential government influence over its board's effectiveness and management strategy in the challenging Turkish operating environment, which has a negative impact on the bank's credit profiles and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Turkiye Vakiflar Bankasi T.A.O. LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Natl LT AA(tur) Affirmed AA(tur) Viability bb- Affirmed bb- Government Support bb- Affirmed bb- senior unsecured LT BB- Affirmed BB- subordinated LT B Affirmed B subordinated LT B- Affirmed B- senior unsecured ST B Affirmed B ULKER BISKUVI: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Ulker Biskuvi Sanayi A.S.'s Long-Term Issuer Default Rating (IDR) at 'BB' with a Stable Outlook and senior unsecured rating at 'BB' with a Recovery Rating of 'RR4'. Ulker's rating reflects its strong position in the Turkish confectionery market, with significant pricing power and strong brands, and its moderate international diversification. It also reflects Ulker's exposure to the volatile economic environment in the Middle East and central Asia, and FX risks, balanced by its conservative capital structure. Ulker's rating is one notch above Turkiye's 'BB-' Country Ceiling, reflecting a sufficient hard-currency debt service ratio over 1x in the next 18 months, justifying an uplift under its Corporate Rating Criteria. The Stable Outlook reflects significant leverage headroom despite its expectations of EBITDA margin reduction in 2026, mainly due to inflationary accounting impact and weakened consumer sentiment in its core markets. It also reflects limited refinancing risks and ample liquidity. Key Rating Drivers Temporary Margin Pressure: Fitch expects Ulker's EBITDA margin to reduce by around 380bp to 12.5% in 2026 (2025: 16.3%), mainly driven by the impact of inflation accounting on high inventory levels at end-2025, which will be recognised at a higher inflation-adjusted replacement cost. Fitch projects the reported EBITDA margin will recover to around 16% in 2027, as inventory levels normalise and the revaluation effect fades. The former will be supported by a mild recovery in sales volumes from 2026, an improving sales mix toward higher value-added products, and cost-efficiency savings, together leading to gradual EBITDA margin recovery to 17%-18% in 2028-2029. Ample Leverage Headroom: Fitch projects EBITDA net leverage increasing to 2.5x (2025: 2.0x), which will still be well below the negative sensitivity of 3.5x, suggesting good headroom under the rating for any further potential operating weakness. Fitch expects EBITDA margin recovery will lead to leverage reducing to below 2x from 2027, in line with Ulker's commitment to maintaining leverage below 2.0x in the medium term, providing a good opportunity to absorb potential pressure from external shocks or flexibility for higher investments in the business. Positive FCF: Fitch projects Ulker's free cash flow (FCF) will be mildly negative in 2026, despite pressure on the EBITDA margin, with the FCF margin averaging about 3% over 2027-2029. This is based on its expectations of a moderate normalisation in working-capital requirements, mainly in inventory, and a slight increase in capex intensity to 3.5% in 2026 (2025: 1.6%), offset by a decline in dividends based on lower net profits in 2025. Ulker began dividend payments in 2025, which reduced its expectations for the FCF margin over the medium term towards low-single digits. Fitch assumes steady dividend growth, with dividends remaining around 45% of net income over 2027-2029. Foreign-Currency IDR Above Country Ceiling: Ulker's IDR remains above Turkiye's Country Ceiling, as Fitch expects the hard-currency external debt-service ratio to be above 1x on a sustained basis. This is based on its expectation that Ulker will continue to generate sufficient EBITDA from exports and overseas operations, maintain a substantial offshore cash balance and adhere to a comfortable schedule of repayments for its foreign-currency debt. Fitch considers Turkiye the applicable Country Ceiling for Ulker's IDR, as its EBITDA from countries with higher Country Ceilings - Saudi Arabia, United Arab Emirates and Kazakhstan - is insufficient to cover hard-currency debt service. High FX Risks: Ulker's foreign operations and policy of maintaining a significant share of cash in hard currencies help reduce FX exposure arising from its debt being almost fully hard-currency-denominated. Foreign operations accounted for 30% of Ulker's revenue and 26% of EBITDA in 2025. Its financial results are reported in Turkish lira and are usually positively affected by the FX impact on its operations in Saudi Arabia and the UAE due to hard currency-denominated exports and sales in Saudi riyal and Emirati dirham, which are pegged to the US dollar. Fitch assumes that Ulker will maintain at least 50% of its cash balances in hard currencies over 2026-2029. Market Leader in Turkiye: Ulker's ratings continue to benefit from a strong position as the largest confectionery producer in Turkiye, where it generates around 70% of its EBITDA, and a 34% share in the snack market in 2025. It has leading market positions in chocolate and biscuits, and the second-largest share in cakes. Ulker is also a leader in Saudi Arabia and Egypt's biscuit markets, and the second-largest company in Kazakhstan's confectionery market. Ringfencing from Parent: The rating is predicated on Ulker being ring-fenced from its ultimate parent, Yıldız Uluslararası Gıda Yatırımları. A.Ş., and its assumption that Ulker's cash flow will not be used to service the substantial debt of its parent or its sister companies. Ulker had about USD37 million of loans issued to its parent as of March 2026. Fitch includes in its calculation of leverage metrics the guarantees Ulker provides for third-party obligations (2025: USD33 million). It has not issued any new loans to related parties since 2022, and Fitch expects this to continue. No parent-subsidiary linkage or operating environment aspects affect the rating. Peer Analysis Ulker's credit profile is comparable with that of European frozen foods producer Nomad Foods Limited (BB/Stable), which has similar scale and reasonable market share in its sector, but weaker operating margins and higher leverage. The latter is balanced by Ulker's higher exposure to FX risks and weaker operating environment. Ulker's credit profile is stronger than Argentinean confectionery producer Arcor S.A.I.C.'s (B/Stable). Arcor's IDR is one notch higher than Argentina's Country Ceiling of 'B-' due to its strong debt service ratio, in line with Fitch's criteria. Both companies' credit profiles benefit from the strength of local brands, geographic diversification, and about a third of revenue being generated outside their domestic markets. Both are exposed to FX risks due to substantial debt in hard currencies. However, Ulker's rating benefits from larger scale, stronger EBITDA margins and lower leverage. Ulker has larger scale, higher operating margins and significantly lower leverage than Platform Bidco Limited (Valeo Foods; B-/Stable), an Ireland-based producer of wafers, sweets, snacks and ambient food. This is partly balanced by Ulker's higher FX risks and exposure to more volatile operating environments in its core markets. Ulker is rated lower than Coca-Cola Icecek AS (CCI; BBB/Stable), which generates most of its sales and EBITDA outside Turkiye and has a different applicable Country Ceiling (Kazakhstan; BBB+). CCI's is bigger in sales and EBITDA than Ulker, while having comparable leverage and its ratings also benefit from a one-notch uplift for potential support from The Coca-Cola Company. Fitch’s Key Rating-Case Assumptions - Exchange rate of USD/TRY 51 at end-2026, USD/TRY 59 at end-2027, and USD/TRY 67 at end-2028 - Fitch-assumed inflation in Turkiye of 29.5% at end-2026, 22.5% at end-2027 and 18% in 2028 - Annual double-digit organic revenue growth in Turkiye, driven by pricing amid high inflation in the country, and mid- to high-single digit organic revenue growth in international segment with reported revenue benefiting from a positive FX impact - EBITDA margin declining to 12.5% in 2026 (2025: 16.3%), mainly driven by inflation accounting, before recovering towards 18.2% in 2029 - Capex at 3.5% of revenue in 2026, and 2.5%-3.0% in 2027-2029 - Common dividends of TRY2.1 billion in 2026, gradually growing towards TRY10 billion in 2029 based on Fitch's assumption of 45% payout ratio of net income) - No M&A Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb-', Lower), sector characteristics ('bbb', Moderate), market and competitive positioning ('bb', Higher), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bbb-', Lower), profitability ('bb', Moderate), financial structure ('bbb', Moderate), and financial flexibility ('bb-', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. The governance assessment of 'good' has no impact. The operating environment assessment of 'bb' has no impact. The SCP is 'bb'. To derive the Long-Term IDR: Country Ceiling considerations apply and result in an adjustment of 0 notches. Fitch made no adjustments to the SCP, resulting in an IDR of 'BB'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Downward revision of Turkiye's Country Ceiling to below 'BB-' - Weakening operating environment in Ulker's countries of operations, resulting in a lower operating environment score - Deteriorated liquidity position; inability to timely address approaching debt maturities - EBITDA net leverage above 3.5x due to M&A, investments in high-risk securities or related-party transactions leading to significant cash leakage outside Ulker's scope of consolidation - Increased competition or consumers trading down eroding Ulker's share in key markets and leading to sustainably weaker operating margins - Neutral-to-negative FCF on a sustained basis Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Stable market shares in Turkiye or internationally translating into resilient operating margins and further growth and scale - EBITDA net leverage remaining below 2.5x, supported by healthy operating performance and a consistent financial and cash-management policy - Consistently positive FCF - Evidence of robust contractual ring-fencing from the Yildiz Group and improved financial flexibility with confirmed record of adherence to the stated financial policy - Upward revision of Turkiye's Country Ceiling together with Ulker maintaining its hard-currency external debt service ratio sustainably above 1x over the next 18 months Liquidity and Debt Structure At end-2025, Ulker had TRY23.3 billion of cash (partly held offshore), which together with its expectations of positive FCF should fully cover TRY14.7 billion of short-term debt maturities. In April, Ulker refinanced USD440 million loans due in 2026, extending its maturities to 2030. The USD550 million bond issue matures in 2031. Issuer Profile Ulker is the largest confectionery producer in Turkiye, with presence in Saudi Arabia, Egypt, Kazakhstan, UAE and exporting mainly to the rest of Middle East and North African countries but also to the US, the UK, China and Japan. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Ulker Biskuvi Sanayi A.S.. ESG Considerations Ulker Biskuvi Sanayi A.S. has an ESG Relevance Score of '4' for Group Structure due to the complexity of the structure of its parent company, Yildiz, and material related-party transactions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Ulker Biskuvi Sanayi A.S. LT IDR BB Affirmed BB senior unsecured LT BB Affirmed RR4 BB =========================== U N I T E D K I N G D O M =========================== ETHICAL POWER: Interpath Advisory Appointed as Joint Administrators ------------------------------------------------------------------- Ethical Power Connections Ltd was placed into administration in the High Court of Justice, Court Number CR-2026-000137. Gareth Slater and Michael Leeds, both of Interpath Advisory (Interpath Ltd), were appointed as Joint Administrators on June 5, 2026. The company previously traded under several names, including Ethical Power Ltd, Ethical Power Connections Ltd, High Voltage Contractors Ltd, and Electrical Distribution Contracting Limited. The company specialised in electrical installation and other specialised construction activities not elsewhere classified. Its registered office is Interpath Ltd, 10 Fleet Place, London, EC4M 7RB. Its principal trading address is Unit 9 Dunchideock, Dunchideock Barton, Exeter, Devon, EX2 9UA. The Joint Administrators can be contacted at: Gareth Slater Michael Leeds Interpath Advisory Interpath Ltd 10 Fleet Place London EC4M 7RB Further information: Contact: Elena Caioni Email: epclcreditors@interpath.com Interpath Advisory EUROPEAN CARGO: Teneo Financial Appointed as Joint Administrators ----------------------------------------------------------------- European Cargo Limited was placed into administration in the High Court of Justice, Court Number CR-2026-004330. Stuart Morris, Robert Scott Fishman, and David Philip Soden, all of Teneo Financial Advisory Limited, were appointed as Joint Administrators on June 3, 2026. The company specialised in freight air transport. Its registered office and principal trading address is 1 Enterprise Way, Aviation Park, Bournemouth International Airport, Hurn, Christchurch, BH23 6BS. The Joint Administrators can be contacted at: Stuart Morris Robert Scott Fishman David Philip Soden Teneo Financial Advisory Limited The Colmore Building 20 Colmore Circus Queensway Birmingham B4 6AT Further information: Tel: 0113 3960 159 Email: eclcreditors@teneo.com HAWKSMOOR CONSTRUCTION: Marshall Peters Appointed as Administrators ------------------------------------------------------------------- Hawksmoor Construction Ltd was placed into administration in the High Court of Justice, Court Number CR-2026-000832. Lee Morris and John Thompson, both of Marshall Peters, were appointed as Joint Administrators on June 1, 2026. The company specialised in other business support service activities not elsewhere classified. Its registered office and principal trading address is Unit 4 Abbotts Business Park, Primrose Hill, Kings Langley, WD4 8FR. The Joint Administrators can be contacted at: Lee Morris John Thompson Marshall Peters Bartle House Oxford Court Manchester M2 3WQ Further information: Contact: Samuel Crees Tel: 0161 914 9255 Email: samuelcrees@marshallpeters.co.uk Marshall Peters MAJOR VEHICLE: FTS Recovery Appointed as Joint Administrators ------------------------------------------------------------- Major Vehicle Group Limited (previously known as Major Holdings Limited) was placed into administration in the High Court of Justice, Court Number 000176 of 2026. Marco Piacquadio and Rachel Elizabeth Ennis, both of FTS Recovery Limited, were appointed as Joint Administrators on May 26, 2026. The company specialized in motor vehicle-related operations. Its registered office and principal trading address is 207 High Street, Waltham Cross, EN8 7AY. The Joint Administrators can be contacted at: Marco Piacquadio FTS Recovery Limited Ground Floor, Baird House Seebeck Place, Knowlhill Milton Keynes MK5 8FR -- and -- Rachel Elizabeth Ennis FTS Recovery Limited Alma Park Woodway Lane Lutterworth Leicestershire LE17 5FB Further information: Contact: Runita Kholia Tel: 01908 754 666 FTS Recovery Limited PERITUS CORPORATE: RMT Accountants Appointed as Administrators -------------------------------------------------------------- Peritus Corporate Finance Limited was placed into administration in the High Court of Justice, Court Number CR-2026-NCL-000062. Christopher John Ferguson and Manjit Shokar, both of RMT Accountants & Business Advisors Limited, were appointed as Joint Administrators on June 3, 2026. The company specialised in financial intermediary services. Its registered office and principal trading address is 1 Bankside, The Watermark, Gateshead, NE11 9SY. The Joint Administrators can be contacted at: Christopher John Ferguson Manjit Shokar RMT Accountants & Business Advisors Limited Gosforth Park Avenue Newcastle upon Tyne NE12 8EG Further information: Contact: Craig Harmon Tel: 0191 482 3343 Email: craig.harmon@r-m-t.co.uk RMT Accountants & Business Advisors Limited PERITUS PRIVATE: RMT Accountants Appointed as Joint Administrators ------------------------------------------------------------------ Peritus Private Finance Limited was placed into administration in the High Court of Justice, Court Number CR-2026-NCL-000061. Christopher John Ferguson and Manjit Shokar, both of RMT Accountants & Business Advisors Limited, were appointed as Joint Administrators on June 3, 2026. The company specialised in financial intermediation not elsewhere classified. Its registered office is RMT Accountants and Business Advisors Ltd, Gosforth Park Avenue, Newcastle upon Tyne, Tyne & Wear, NE12 8EG. Its principal trading address is 1 Bankside, The Watermark, Gateshead, NE11 9SY. The Joint Administrators can be contacted at: Christopher John Ferguson Manjit Shokar RMT Accountants & Business Advisors Limited Gosforth Park Avenue Newcastle upon Tyne NE12 8EG Further information: Contact: Craig Harmon Email: insolvency@r-m-t.co.uk Tel: 0191 482 3343 RMT Accountants & Business Advisors Limited WOODROW MERCER: Leonard Curtis Appointed as Joint Administrators ---------------------------------------------------------------- Woodrow Mercer Healthcare Limited was placed into administration in the Business and Property Court in Manchester, Court Number CR-2026-MAN-000767. Andrew Poxon and Andrew Knowles, both of Leonard Curtis, were appointed as Joint Administrators on May 29, 2026. The company specialised in management consultancy activities other than financial management. Its registered office and principal trading address is Grosvenor House, 11 St Paul's Square, Birmingham, B3 1RB. The Joint Administrators can be contacted at: Andrew Poxon Andrew Knowles Leonard Curtis Riverside House Irwell Street Salford, Manchester M3 5EN Further information: Contact: Harry Gallivan Email: Creditors.Manchester@leonardcurtis.co.uk Leonard Curtis =============== X X X X X X X X =============== [] BOOK REVIEW: LING The Rise, Fall, & Return of a Texas Titan -------------------------------------------------------------- Author: Stanley H. Brown Publisher: Beard Books Softcover: 308 pages List Price: $34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1893122301/internetbankrupt Summed up neatly, this is Jim Ling, founder and CEO of Ling-Temco-Vought, once the fourteenth-largest corporation on the Fortune 500 list: That he was able to get control of - and combine - the sixth largest steel company, the eighth largest airline, the eighth largest defense contractor, the third largest meat packer, the largest sporting-goods maker, and a string of other companies in an almost random group of industries may well be the most significant thing to be said about him. Or maybe it is the fact that he performed all this from a base of little education, no connections, no money, no status, no leverage of any kind, but solely on the strength of what he discovered and created. As fascinating as Ling was, this book offers so much more. Stanley H. Brown presents a remarkable knowledge of and intriguing insights into corporate history and institutional behavior. He understands what makes organizations work, whether corporate, religious, or military. Although it has been more than 25 years since Jim Ling was on top of the world, he and his story remain hard to beat. He was a man of integrity. Faced with defeat, he conjured up innovative solutions. He picked up the pieces and tried something else, and even investors once burned went back for more. He believed in himself and his ventures absolutely, so much so that he kept all his won money and his children's money in LTV stock, and was wiped out when it went bust. Ling was born one of six in Hugo, Oklahoma. A devout Catholic in the fundamentalist Bible Belt, his father killed a fellow worker in a rage after years of enduring anti-Catholic torment and, although acquitted, was so racked with guilt he left the family to live in a monastery. Ling's mother died when he was eleven. He never finished high school. After a short stint in the Navy during World War II, during which time he became an electrician, he started Ling Electric in Dallas. Post-war Dallas was good to bright men who worked hard. The company grew exponentially. Ling discovered public investors and began infusing them with his enthusiasm, enthusiasm that made them hand over lots of money to him. And he began to acquire companies at a dizzying pace, bigger and bigger companies: meatpacker Wilson & Co., steelmaker Jones & Laughlin, Braniff Airlines, LTV Aerospace, Wilson Sporting Goods, and many other, smaller companies. He was masterful financier with seemingly endless ideas on making money work. So where did it go wrong? Ling's over-conglomerated conglomerate spun out of control. He was a micromanager extraordinaire and kept too much decision-making power to himself. He was a victim of his own success and overfed ego. He fought long and hard with the Justice Department in an antitrust suit over Jones & Laughlin, but the country's suspicion of conglomerates in the late 1960s got the better of him. In the end, he was ousted by his own people but, true to form, went on to try something new. The author researched this book very thoroughly. He convinced Ling to keep a journal during some critical moments and interviewed all the major players. Read it for the story of Ling, but also to learn about what makes people tick. Stanley H. Brown is a former writer and editor at Business Week, Fortune, and Forbes. His columns have appeared in numerous publications. ********* 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. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *