Fitch Affirms 9 CLOs From Various Vintages
KEY RATING DRIVERS
The affirmations on all classes included in this review are based on the stable performance of the underlying portfolios since the transactions' inceptions and the sufficient credit enhancement available to the notes. The credit quality of the underlying portfolios has remained relatively stable, as reflected by the weighted average rating factor (WARF) levels since closing and/or the last review. To date, there have been no reported breaches in collateral quality tests or defaulted assets in each CLO.
The transactions included in this rating action originated in 2012-2014 and are managed by Apollo Credit Management (CLO), LLC, BlackRock Financial Management, Inc., Credit Suisse Asset Management, LLC, GSO/Blackstone Debt Funds Management LLC, Octagon Credit Investors, LLC, Shenkman Capital Management, Inc., and Sound Point Capital Management, LP. All CLOs still remain in their respective reinvestment periods.
Fitch publishes quarterly report titled "U.S. CLO Tracker" that provides information on key performance metrics for Fitch rated CLOs. The report is published on 'www.fitchratings.com' and the most recent Tracker can be accessed by using the link below.
RATING SENSITIVITIES
The ratings of the notes may be sensitive to the following: asset defaults, significant negative credit migration, lower than historically observed recoveries for defaulted assets, and breaches of concentration limitations or portfolio quality covenants. Fitch conducted rating sensitivity analysis on the closing date of each CLO in this review, incorporating increased levels of defaults and reduced levels of recovery rates, among other sensitivities.
This review was conducted under the framework described in the report 'Global Rating Criteria for Corporate CDOs' using the PCM for projecting future default and recovery levels for the underlying portfolios. Given the stable performances of each transaction, no updated cash flow modeling was completed for this review.
DUE DILIGENCE USAGE
No third party due diligence was reviewed in relation to this rating action.
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