OREANDA-NEWS. Fitch Ratings has affirmed the class A notes issued by MCF CLO IV LLC (MCF CLO IV) at 'AAAsf'. The Rating Outlook remains Stable.

KEY RATING DRIVERS

The affirmation is based on the credit enhancement (CE) available to the notes and the stable performance of the underlying portfolio since the transaction's inception in November 2014.

The loan portfolio par amount plus principal cash is approximately \\$402.6 million (excluding PIK and capitalized interest amounts), as of the Aug. 10, 2015 trustee report, resulting in increased credit enhancement for the class A notes. All collateral quality tests, concentration limitations, and coverage tests are in compliance, and there are no defaulted assets in the portfolio. The weighted average spread (WAS) has remained stable at 5.78%, and the weighted average rating factor (WARF) of the underlying portfolio remains at 'B/B-'. For this review, Fitch currently considers approximately 5.3% of the portfolio to be rated in the 'CCC' category, based upon Fitch's Issuer Default Rating (IDR) Equivalency Map. The loan portfolio is 100% invested in senior secured middle market (MM) loans, and the trustee reported a Fitch Weighted Average Recovery Rating (WARR) of 77%. Approximately 60.1% of the performing portfolio is considered to have strong recovery prospects or a Fitch-assigned Recovery Rating of 'RR2' or higher.

The portfolio is managed to a "Fitch Test Matrix", featuring various combinations of permitted Fitch WARF, Fitch WARR, and WAS triggers. As of the effective date, the manager selected a maximum WARF of 44.0 ('B-/CCC'), minimum WARR of 70.5% and minimum WAS of 4.9%.

The Stable Outlook on the class A notes reflects the expectation that the notes have a sufficient level of credit protection to withstand potential deterioration in the credit quality of the portfolio.

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. Rating sensitivities based off of the Fitch Stressed Portfolio were conducted at close. Given the stable performance of the portfolio, no updated cash flow modelling or additional sensitivities were run for this review.

MCF CLO IV is a MM collateralized loan obligation (CLO) that is managed by MCF Capital Management LLC (MCF). The transaction will remain in its reinvestment period until October 2018 and will mature in October 2025. Fitch's leveraged finance group provided model- and analyst-based credit opinions for all of the non-publicly rated loans in the portfolio, based on financial statements provided to Fitch by MCF.

DUE DILIGENCE USAGE

No third party due diligence was reviewed in relation to this rating action.

Fitch has affirmed the following rating:

--\\$228,500,000 class A notes at 'AAAsf'; Outlook Stable.

Fitch does not rate the class B, C, D, or E notes, or the equity interests.