KBRA UK (KBRA) assigns preliminary ratings to seven classes of notes issued by RRE 15 Loan Management DAC, a cash flow collateralised loan obligation (CLO) backed primarily by a diversified portfolio of Euro-denominated corporate loans.
RRE 15 Loan Management DAC is managed by Redding Ridge Asset Management (UK) LLP ("RRAM UK" or the "collateral manager"). The CLO will have a 4.6-year reinvestment period and a 12.6-year legal final. The ratings reflect initial credit enhancement levels, coverage tests including par value and interest coverage tests, excess spread, and a reinvestment overcollateralisation test.
The collateral in RRE 15 Loan Management DAC will mainly consist of broadly syndicated leveraged loans and bonds issued by corporate obligors diversified across sectors. The target portfolio par amount is €400.0 million with exposures to 94 obligors. The obligors in the portfolio have a K-WARF of 2522, which represents a weighted average portfolio assessment of approximately B.
RRAM UK is a UK-based subsidiary of Redding Ridge Asset Management LLC, an independent asset management company established and seeded by Apollo Global Credit Management, LLC (Apollo) in 2016 to manage CLOs. The RRAM UK management arm currently manages more than €4.0 billion in assets across twelve European CLOs.
The ratings on the Class A-1, Class A-2A and Class A-2B Notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class B-1, B-2, C and D Notes consider the ultimate payment of interest and principal by the applicable stated maturity date.
In performing the rating analysis, KBRA utilized its Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty and the ESG Global Rating Methodology.
To access ratings and relevant documents, click here.
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Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, andESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating's endorsement status is available on its rating page at KBRA.com.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA's Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.
About KBRA UK
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an 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. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.
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Contacts:
Analytical Contacts
Gabriele Gramazio, Senior Director (Lead Analyst)
+44 20 8148 1001
gabriele.gramazio@kbra.com
Katherine Quirke, Director
+353 1 588 1185
katherine.quirke@kbra.com
Sean Malone, Managing Director (Rating Committee Chair)
+1 (646) 731-2436
sean.malone@kbra.com
Eric Hudson, Senior Managing Director
+1 (646) 731-3320
eric.hudson@kbra.com
Business Development Contacts
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
