S&P: Ivy Hill Middle Market Credit Fund VII Ltd. Class A Rating Affirmed
Today's rating actions follow our review of the transaction's performance using data from the Aug. 1, 2016, trustee report. Our affirmation of the rating reflects the available credit support and the transaction's stable performance since our February 2014 effective date rating affirmations, which is consistent with the current rating level, in our view.
The deal's reinvestment period is scheduled to end in October 2017. Since the transaction's effective date, the balance of 'CCC' rated assets held in the underlying portfolio has decreased to $10.2 million from $20.8 million, and the balance of defaulted collateral has increased slightly to $1.56 million from zero. The overcollateralization (O/C) ratios have increased slightly since the December 2013 effective date report:
The class A/B O/C ratio was 145.47%, up from the 145.35%.
The class C O/C ratio was 133.19%, up from 133.08%.
The class D O/C ratio was 124.89%, up from 124.79%.
The class E O/C ratio was 113.57%, up from 113.48%.
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.
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