LONDON–(COMMERCIAL THREAD) – Kroll Bond Rating Agency UK Limited (KBRA) assigns preliminary ratings to five categories of notes issued by RRE 10 Loan Management DAC, a cash flow secured loan obligation (CLO) backed primarily by a diversified portfolio of loans to companies denominated in euros.
RRE 10 Loan Management DAC is managed by Redding Ridge Asset Management (UK) LLP (“RRAM UK” or the “Collateral Manager”). The CLO will have a reinvestment period of 4.5 years and a final legal term of 12.4 years. Ratings reflect initial credit enhancement levels, coverage tests including face value and interest coverage tests, excess spread and a reinvestment over-collateralization test.
The guarantee of the RRE 10 loan management DAC will mainly consist of largely syndicated leveraged loans and bonds issued by debtor companies diversified in all sectors. The nominal amount of the target portfolio is 500.0 million euros with exposures to 147 debtors. Debtors in the portfolio have a K-WARF of 2421, which represents a weighted average portfolio valuation of approximately B.
RRAM UK is a UK subsidiary of Redding Ridge Asset Management LLC, an independent asset management company established and established by Apollo Global Credit Management, LLC (Apollo) in 2016 to manage CLOs. RRAM UK’s management arm currently manages over € 3.0 billion in assets across seven European CLOs.
The ratings of Class A-1 and A-2 Notes reflect the timely payment of interest and final principal payment on the applicable stated maturity date, while the ratings of Class B, C and D Notes take into account the final payment of interest. and the principal before the applicable stated maturity date.
Further information on key credit considerations, sensitivity analyzes that examine the factors that may affect these credit ratings and how they might lead to an upgrade or downgrade, and ESG factors (where they are a key factor in changing the credit rating or rating outlook) can be viewed in the full rating report mentioned above.
A description of all substantially significant sources that were used to prepare the credit rating and information about the method (s) (including significant models and sensitivity analyzes of the relevant key rating assumptions, if any) used to determine the credit rating is available in the information disclosure form (s) located here.
Information about the meaning of each rating category can be located here.
This credit rating is approved by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information about a credit rating’s approval status is available on its rating page on KBRA.com.
Further information relating to this rating measure is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures can be found at www.kbra.com.
About KBRA France
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a credit rating agency with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a credit rating agency with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is appointed as the designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a 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 Augustine House, Austin Friars, London, EC2N 2HA, United Kingdom.