Press Release|Structured Credit

KBRA Affirms Ratings for Logan CLO III, Ltd.

11 Apr 2024   |   New York


KBRA affirms ratings on three classes of Notes issued by Logan CLO III, Ltd. (“Logan III”), a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of broadly syndicated senior secured leveraged loans.

Logan CLO III, Ltd. is a $502.3 million cash flow CLO managed by Elmwood Asset Management LLC (“Elmwood”). The transaction closed in May 2022 and the reinvestment period ends in April 2027. Since the transaction closed the notes have received timely distributions of interest payments.

As of the March 2024 trustee report, the aggregate principal balance of the collateral obligations is $509.2 million and has a negative principal proceeds balance of $5.7 million. There are two default obligations and no discount obligations in the portfolio. Per the most recent trustee report, the transaction is in compliance with all portfolio profile tests.

Based on the trustee report, the portfolio comprises 1296 assets from 359 obligors. Since April 2023, the par subordination of the Class D and E Notes have decreased to 12.31% and 8.59% from 18.69% and 14.95% respectively, with the decrease mainly due to the amortization of the Class D Notes. The K-WARF of the transaction is 2368 which represents a weighted average credit assessment of B.

The rating on the Class A Notes considers the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class D and E Notes consider the ultimate payment of interest and principal.

In performing the rating review, KBRA utilized its Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty Methodology and the ESG Global Rating Methodology.

To access rating and relevant documents, click here.

Click here to view the report.

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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.

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

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003903

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