European Transportation Credit: Mid-Year Outlook: Recommendation Changes and RelVal

Research evidence excerpt

European Transportation Credit: Mid-Year Outlook: Recommendation Changes and RelVal

J P M O R G A N Europe Credit Research

23 June 2026

European Transportation Credit

Mid-Year Outlook: Recommendation Changes and

RelVal

Today we published our European Transportation Mid-Year Outlook slide deck. Europe Corporate Credit -

The Iran war has, of course, resulted in volatility in Transportation credit spreads Healthcare, Transportation and

YTD, however, levels have come back in over recent weeks in anticipation of a deal Sustainable Investing

being reached. With an MoU signed between the US and Iran on 17-Jun, many Danielle Ward, CFA AC

credits are now trading in-line with, or inside of, pre-war levels. The exercise to (44-20) 7742-7344

find compelling relative value is therefore not the easiest, however, we highlight danielle.x.ward@jpmorgan.com

some of our preferences and RV observations in the text below. Erik Wolf

(44 20) 3493-4385

• We see value in European IG/XO Hotels relative to Airlines, trading in erik.x.wolf@jpmorgan.com

similar territory despite lower cyclicality and business risk profiles for the Adeline Z Kwok, CFA

asset-light hotel names we cover. For example, we highlight IHGLN (N) (44 20) 7134 0302

adeline.zinhe.kwok@jpmorgan.com

Sep’31s trading at Z-spread 87bp (rated Baa2/BBB) vs. IAGLN (N) Jan’31s J.P. Morgan Securities plc

Z 88bp (rated Baa2/BBB) and LHAGR (UW) € Sep’32s Z 84bp (rated Baa3/

BBB-/BBB-).

• We also highlight ACFP’s (N) Jun’30-call hybrid notes yielding

4.6% to call, vs. LHAGR Oct’30-call hybrids yielding 4.7% (both

hybrids are rated BB by S&P but after Fitch’s upgrade of Accor’s

ratings on 19-Jun, the ACFP hybrids are rated BB+/Stable by Fitch vs.

LHAGR’s notes BB/Stable; the LHAGR notes are also rated Ba1 by

Moody’s).