LONDON – (BUSINESS WIRING) – Kroll Bond UK Limited (KBRA) ratings agency assigns provisional ratings to five classes of bonds issued by RRE 8 Loan Management DAC, cash flow secured (CLO) loan commitments secured by a largely diversified portfolio of euro-denominated corporate loans and bonds.
RRE 8 Loan Management DAC is administered by Redding Ridge Asset Management (UK) LLP (“RRAM UK” or “Collateral Manager”). The CLO will have a 4.5 year reinvestment period and a 15 year legal final. The ratings reflect initial credit enhancements, coverage tests including par value and interest coverage tests, spread overshoots, and reinvestment overcollateralization tests.
The collateral in RRE 8 Loan Management DAC will consist primarily of leveraged syndicated loans and bonds issued by sector-diversified corporate borrowers. The portfolio has a nominal target amount of EUR 500.0 million with 155 borrowers at risk. The borrowers in the portfolio have a K-WARF of 2,494, which is a weighted average of the portfolio of about B.
RRAM UK is a UK subsidiary of Redding Ridge Asset Management LLC, an independent asset management company formed and initiated by Apollo Global Credit Management, LLC (Apollo) in 2016 to manage CLOs. RRAM UK’s management unit currently manages assets of over 3.0 billion euros in seven European CLOs.
Grade A-1 and A-2 bond ratings take into account timely interest payments and final principal payments at the applicable specified maturity, while B, C and D grade ratings take into account final interest payments. and principal up to the respective statutory maturity date.
KBRA analyzed the transaction with Structured Loan Global Ranking Methodology, then Global Structured Finance Counterparty Methodology and ESG Global Ranking Methodology…
Additional information on key creditworthiness considerations, sensitivity analyzes that consider what factors might affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (where they are a key driver of credit rating or rating forecast changes) can be found in the full rating report mentioned above.
A description of all material sources used to prepare the credit rating and information on the methodology (s) (including any significant models and sensitivity analysis of the related key rating assumptions, if applicable) used in determining the credit rating is available. in the Disclosure Forms located here…
Information on the meaning of each rating category can be found here…
This credit rating is approved by Kroll Bond Rating Agency Europe Limited for use in the European Union. Credit rating confirmation status information is available on the rating page on KBRA.com.
Additional information disclosed in connection with this rating action is available in the disclosure form (s) referred to above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures is available at www.kbra.com…
About KBRA UK
Kroll Bond Rating Agency, LLC (KBRA) is a full cycle credit rating agency registered by the US Securities and Exchange Commission as the NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority under the Temporary Registration Regime. In addition, KBRA has been designated by the Ontario Securities Commission as a rating organization for issuers of asset-backed securities to file a short prospectus or finished prospectus. KBRA is also recognized as a credit rating provider by the National Insurance Commissioners Association. The Kroll Bond UK rating agency is located at Augustine House, Austin Friars, London, EC2N 2HA, United Kingdom.