Scope’s 12-month trailing ratings drift for structured finance transactions continued its shift into positive territory in the third quarter of 2025, with a positive ratio of upgrades over downgrades not seen since early 2022.

The affirmation reflects the issuers stable operating profitability and moderate increase in leverage amidst a multi-year capital investment programme.

Scope has ceased analytical coverage of LR Health & Beauty due to business reasons.

Scope Ratings UK Limited (Scope) announces that the replenishment of the underlying CRE mortgage pool will not, in and of itself, result in a Rating Action or withdrawal of the current ratings of the notes issued by Shelby Real Estate Funding Limited.

The rating reflects the bank’s well-established regional banking model, robust capitalisation and solid profitability metrics. Some asset quality risk, amid a weak macro-economic environment, is the main credit challenge.

The issuer rating reflects a weak business risk profile, primarily shaped by Nova’s small scale and limited diversification across geographies and industry segments, partially balanced by stable leverage expected to remain below 3.5x over the medium term.

The downgrade is based on the downward revision of EBITDA expectations in 2025-26. The Negative Outlook reflects the persistently difficult business environment as well as governance issues.

The issuance ratings are supported by a guarantee from Telemark County Municipality and are therefore aligned with Telemark’s AA+/Stable ratings.

The issuance ratings are supported by a guarantee from Vestfold County Municipality and are therefore aligned with Vestfold’s AA+/Stable ratings.

Elevated geopolitical tensions, deeper political polarisation and persistent fiscal challenges outweigh the potential for stronger growth and instances of fiscal resilience, driving our overall negative sovereign credit outlook.