OREANDA-NEWS. S&P Global Ratings has assigned its preliminary credit ratings to Dryden 46 Euro CLO 2016 B. V.'s class A-1, A-2, B-1, B-2, C, D, E, and F notes. At closing, Dryden 46 Euro CLO 2016 will also issue an unrated subordinated class of notes (see list below).

The preliminary ratings assigned to Dryden 46 Euro CLO 2016's notes reflect our assessment of:The diversified collateral pool, which consists primarily of broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. The transaction's legal structure, which is expected to be bankruptcy remote. We consider that the transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria (see "Counterparty Risk Framework Methodology And Assumptions," published on June 25, 2013).

Following the application of our structured finance ratings above the sovereign criteria, we consider the transaction's exposure to country risk to be limited at the assigned preliminary rating levels, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our criteria (see "Ratings Above The Sovereign - Structured Finance: Methodology And Assumptions," published on Aug. 8, 2016).

At closing, we consider that the transaction's legal structure will be bankruptcy remote, in line with our European legal criteria (see "Europe Asset Isolation And Special-Purpose Entity Criteria--Structured Finance," published on Sept. 13, 2013).

Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our preliminary ratings are commensurate with the available credit enhancement for each class of notes.

Dryden 46 Euro CLO 2016 is a broadly syndicated collateralized loan obligation (CLO) managed by PGIM Ltd., which is the principal asset management business of Prudential Financial, Inc. This is PGIM's second CLO to date in 2016, following Dryden 44 Euro CLO 2015 B. V., which closed in June 2016.