European Morning Credit: Today in European Credit

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European Morning Credit: Today in European Credit

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European Morning Credit

Today in European Credit

Financials 22 May 2026

Nationwide (NWIDE): Structural hedge and cost discipline help adjusted pre-tax profit Credit

rise by 11% in 2H26 (to March 2026). Notable deposit and loan growth (mainly owner- Europe

occupied mortgages). Asset quality still benign. Part VII transfer of Virgin Money European Credit Rsch Grp

completed. Client migration next. Capital buffers robust at 4.2% of RWA. See: Sound BofASE (France)

results with integration progress (LG) See Team Page for List of Analysts

Automotives

Stellantis (STLA): We updated our views on STLA credit ahead of the CMD and after

1Q26 results. OW STLA € 6.25% NC' 31s, STLA £ 8.25% NC'32s, OW/MW select EUR Exhibit 1: Just published

senior notes and Neutral 5Y CDS. We highlight those with best value to comps/low cash Recent publications from European Credit

price bonds. Stellantis has already announced European partnership details with Research

Dongfeng and Leapmotor, and an MOU with JLR. See: Updating credit views before CMD

Nationwide

(SV) Sound results with integration progress

Luis Garrido, CFA

Leisure

Merlin Entertainments (MERLLN): Merlin reported soft 1Q26, and management Merlin Entertainments

offered little colour on 27s refinancing or on FY26 guidance. We are disappointed given Soft 1Q26 despite easy comps, refi remains elusive

Mark Xu, CFA

easy yoy comps & calendar effects, and think this reduces the probability of a front-

loaded refi. We reiterate Overweight €/$27s and Underweight €30s, $31s, $32s. See: Stellantis NV

Soft 1Q26 despite easy comps, refi remains elusive (MX) Updating credit views before CMD

Stephanie Vincent, CFA

Business Services