Surveillance rating activity for European CLOs was lively during Q1 2025, where we reviewed eight transactions managed by eight collateral managers. Rating transitions--mainly upgrades (57% of classes reviewed) and affirmations (41%)--were positive, reflecting stable credit performance and higher credit enhancement spurred by deleveraging. Rating action severities were 2.4 notches for upgrades, 2.0 for downgrades, and 1.4 for all rating actions during the quarter.