OREANDA-NEWS. S&P Global Ratings today affirmed its ratings on the class A, B-1, B-2, C, D, E, and F notes from Apidos CLO XII, a U. S. collateralized loan obligation (CLO) transaction that closed in April 2013 and is managed by CVC Credit Partners (see list). The transaction is scheduled to remain in its reinvestment period until April 2017.

Today's rating actions follow our review of the transaction's performance using data from the July 2016 trustee report. Since the July 2013 trustee report, the amount of 'CCC' rated assets has increased to $18.95 million from $6.91 million, and defaults in the portfolio have increased to $4.54 million from zero. There has also been a slight decline in the overcollateralization (O/C) ratios during this time. The July 2016 trustee report indicated the following O/C changes compared with the July 2013 report:The class A/B O/C ratio decreased to 130.63% from 131.78%.The class C O/C ratio decreased to 120.09% from 121.15%. The class D O/C ratio decreased to 113.21% from 114.21%.The class E O/C ratio decreased to 108.05% from 109.01%.The class F notes do not pass our cash flow stresses with cushion at their current rating level. But despite the increase in 'CCC' and defaulted assets and the subsequent decline in O/C ratios, we did note the increase in exposure to assets rated 'BB-' and above and the increase in obligor diversity within the portfolio. Therefore, we affirmed our rating on the class F notes given the overall stable performance of the transaction.

The class A through E notes pass our cash flow stresses with cushion. We affirmed our ratings on these classes to maintain the rating cushion as this transaction will continue reinvesting until 2017 and also to reflect our belief that the credit support available is commensurate with the current rating levels. We will continue to review whether, in our view, the ratings assigned to the notes remain consistent with the credit enhancement available to support them, and will take rating actions as we deem necessary.