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.

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 downgrade stems from substantial EBITDA erosion and mounting liquidity risks ahead of scheduled amortizations. The Negative Outlook indicates persistent liquidity strain and increased refinancing risk should leverage stay at elevated levels.

The upgrade reflects easing liquidity pressure following the successful bond refinancing.

The affirmation reflects stabilised credit metrics, with continued efforts to manage working capital and pursue cost efficiencies.

The affirmation follows Scope’s assessment of AEI’s bond restructuring proposal whose execution would not constitute a Selective Default. Significant default risk remains in case noteholders reject the proposal, likely leading to a default.

The Outlook revision reflects the expectation that the company’s financial risk profile will deteriorate amid a new investment-heavy phase beginning in 2026.

Scope has corrected the bond rating for LT0000134439 to B from B-, assigned on 2 July 2025, due to an administrative error.