OREANDA-NEWS. Fitch Ratings has assigned ALME Loan Funding IV B.V. notes final ratings, as follows:

Class A: 'AAAsf'; Outlook Stable
Class B-1: 'AAsf'; Outlook Stable
Class B-2: 'AAsf'; Outlook Stable
Class C: 'Asf'; Outlook Stable
Class D: 'BBBsf'; Outlook Stable
Class E: 'BBsf'; Outlook Stable
Class F: 'B-sf'; Outlook Stable
Participating Term Certificates: not rated

ALME Loan Funding IV B.V. (the issuer) is a cash flow collateralised loan obligation.

KEY RATING DRIVERS
'B'/'B-' Portfolio Credit Quality
Fitch expects the average credit quality of obligors to be in the 'B' category. Fitch has credit opinions or public ratings on all obligors in the identified portfolio. The weighted average rating factor of the identified portfolio is 32.01.

High Recovery Expectations
At least 90% of the portfolio will comprise senior secured obligations. Recovery prospects for these assets are typically more favourable than for second-lien, unsecured and mezzanine assets. Fitch has assigned Recovery Ratings to all assets but one in the identified portfolio. The weighted average recovery rating of the identified portfolio is 70.19%.

Limited Interest Rate Risk
Unhedged fixed-rate assets cannot exceed 7% of the portfolio while fixed-rate liabilities account for 2.2% of the target par balance. Consequently, the impact of unhedged interest rate risk is small.

Participation Agreement
The issuer has entered into a participation agreement with ALME Loan Funding I Limited to purchase approximately EUR130m of assets. The issuer receives the economic benefit of the assets immediately while all titles are expected to be transferred to the issuer in the first few months after closing. Fitch has reviewed relevant legal opinions to gain comfort that the participation agreement, including the obligation to transfer the asset title to the issuer, is legal, valid, binding, and enforceable.

TRANSACTION SUMMARY
Net proceeds from the notes will be used to purchase a EUR450m portfolio of European leveraged loans and bonds. The portfolio is managed by Apollo Management International LLP. The reinvestment period is scheduled to end in 2020.

The transaction documents may be amended, subject to rating agency confirmation or noteholder approval. Where rating agency confirmation relates to risk factors, Fitch will analyse the proposed change and may provide a rating action commentary if the change has a negative impact on the ratings. Such amendments may delay the repayment of the notes as long as Fitch's analysis confirms the expected repayment of principal at the legal final maturity.

If in the agency's opinion the amendment is risk-neutral from a rating perspective Fitch may decline to comment. Noteholders should be aware that confirmation is considered to be given if Fitch declines to comment.

RATING SENSITIVITIES
A 25% increase in the obligor default probability would lead to a downgrade of up to two notches for the rated notes.

A 25% reduction in expected recovery rates would lead to a downgrade of up to four notches for the rated notes.

Key Rating Drivers and Rating Sensitivities are further described in the accompanying new issue report, which will shortly be available at www.fitchratings.com.

DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.

DATA ADEQUACY
The majority of the underlying assets have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant Fitch groups and/or other rating agencies to assess the asset portfolio information.

Overall, Fitch's assessment of the asset pool information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable.

SOURCES OF INFORMATION
The information below was used in the analysis.
- Loan-by-loan data provided by the arranger as at 05 January 2016
- Offering circular provided by the arranger as at 12 January 2016
- Transaction documents as at 14 January 2016