OREANDA-NEWS. S&P Global Ratings today assigned its preliminary ratings to Garrison Funding 2016-2 Ltd./ Garrison Funding 2016-2 LLC's $192 million fixed and floating-rate notes (see list below).

The note issuance is a collateralized loan obligation securitization backed by a revolving pool consisting primarily of U. S. middle-market speculative-grade (i. e., rated 'BB+' or below) senior secured term loans.

The preliminary ratings are based on information as of Sept. 22, 2016. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings.

The preliminary ratings reflect our view of: The diversified collateral pool, which consists primarily of middle-market speculative-grade senior secured term loans (i. e., those rated 'BB+' or lower) 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.