Press Release|Funds
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KBRA Affirms Rating for Penn Mutual AM Strategic Income Fund

6 Oct 2025   |   New York

Contacts

KBRA affirms the BBBkf Fund Rating for Penn Mutual AM Strategic Income Fund (PMUBX).

Key Credit Considerations

  • Portfolio Asset Quality: The portfolio primarily comprises of relatively liquid, exchange-traded debt securities. As of June 2025, PMUBX was comprised of 93 holdings diversified across ABS, CMBS, investment grade corporate, government bond futures, high yield corporate, mortgage and treasury investments, all domiciled in the U.S. The assets provide a moderate level of short-term liquidity and based on the current ratings, the weighted average asset quality of the underlying portfolio is approximately ‘bbb-’.
  • Allocation to High Yield Bonds: The Fund can invest opportunistically and purchase sub-investment grade securities; however, as of June 2025, there’s somewhat limited exposure to sub-investment grade products (about 10.1%). This exposure has decreased since the prior surveillance, and remains a smaller part of the overall portfolio.

Rating Sensitivities

  • Improvement of Investments in Greater Credit Quality Assets: A sustained re-allocation of the portfolio toward securities of higher credit quality.
  • Allocation of Capital Towards Riskier Investments: An increase in portfolio allocation to riskier sectors and products, significant increase to, and change in use of, derivative products, investment in a meaningful amount of non-rated securities, or downgrades of existing portfolio securities.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union and by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1011438