OREANDA-NEWS. Fitch Ratings assigns the following ratings and Rating Outlooks to Anchorage Capital CLO 8, Ltd./LLC:

--$225,000,000 class A-1 notes 'AAAsf'; Outlook Stable;

--$25,000,000 class A-2 notes 'AAAsf'; Outlook Stable;

--$1,200,000 class X notes 'AAAsf'; Outlook Stable.

Fitch does not rate the class B-1, B-2, C, D, E, F or subordinated notes.

TRANSACTION SUMMARY

Anchorage Capital CLO 8, Ltd. (the issuer) and Anchorage Capital CLO 8, LLC (the co-issuer) comprise an arbitrage cash flow collateralized loan obligation (CLO) that will be managed by Anchorage Capital Group, L. L.C. (Anchorage Capital). Net proceeds from the issuance of the secured and subordinated notes will be used to purchase a portfolio of approximately $400 million of primarily senior secured leveraged loans. The CLO will have a four-year reinvestment period and a two-year noncall period.

KEY RATING DRIVERS

Sufficient Credit Enhancement: Credit enhancement (CE) of 37.5% for class A-1 and A-2 (collectively, class A) notes, in addition to excess spread, is sufficient to protect against portfolio default and recovery rate projections in the 'AAAsf' stress scenario. The degree of CE available to the class A notes is in line with the average CE of recent CLO issuances. Class X notes are expected to be paid in full from the application of interest proceeds in accordance with a payment schedule over the first 23 payment dates.

'B/B-' Asset Quality: The average credit quality of the indicative portfolio is 'B/B-', which is comparable to recent CLOs. Issuers rated in the 'B' rating category denote a highly speculative credit quality; however, in Fitch's opinion, class A notes are unlikely to be affected by the foreseeable level of defaults. Class A and X notes are robust against default rates of up to 68% and 100%, respectively.

Strong Recovery Expectations: The indicative portfolio consists of 98.8% first lien senior secured loans. Approximately 93.8% of the indicative portfolio has either strong recovery prospects or a Fitch-assigned Recovery Rating of 'RR2' or higher, and the base case recovery assumption is 78.3%. In determining the class A and X note ratings, Fitch stressed the indicative portfolio by assuming a higher portfolio concentration of assets with lower recovery prospects and further reduced recovery assumptions of higher rating stress assumptions, resulting in a 38.4% recovery rate assumption in Fitch's 'AAAsf' scenario.

RATING SENSITIVITIES

Fitch evaluated the structure's sensitivity to the potential variability of key model assumptions, including decreases in recovery rates and increases in default rates or correlation. Fitch expects the class A-1 and A-2 notes to remain investment grade even under the most extreme sensitivity scenarios, with results under these sensitivity scenarios ranging between 'A+sf' and 'AAAsf'. The class X notes are expected to remain 'AAAsf' under even the most extreme sensitivity scenarios.

Key Rating Drivers and Rating Sensitivities are further described in the accompanying new issue report, which will be available shortly to investors on Fitch's website at 'www. fitchratings. com'.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.