Press Release|Structured Credit
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KBRA Affirms Ratings for Avoca CLO XXII Designated Activity Company

20 Jan 2026   |   London

Contacts

KBRA UK (KBRA) affirms the ratings for seven classes of notes issued by Avoca CLO XXII DAC. All notes have received timely interest distributions since the transaction closed.

Avoca CLO XXII DAC is a €406.0 million European cash flow CLO managed by KKR Credit Advisors (Ireland) Unlimited Company (KKR Credit Ireland or the collateral manager), a relying adviser of KKR Credit US (KKR). The CLO closed in March 2021 and has exited its reinvestment period. The notes were collateralized by a €400.0 million portfolio of European syndicated senior secured leveraged loans and bonds to corporate borrowers at the closing date.

As of the November 2025 trustee report, the aggregate principal balance is €373.5 million, which includes €34.6 million in principal proceeds. The portfolio as of the November 2025 trustee report date is comprised of assets from 195 obligors. Since the 2025 surveillance, the class A has amortized by more than 9% and the Class A/B Par Value Test has increased to 140.1%. The K-WARF of the portfolio has increased from 2695 since the 2025 surveillance date to 2748, which represents a weighted average rating of B/B-.

The ratings on Class A, B-1 and B-2 Notes consider the timely payment of interest and ultimately payment of principal by the applicable stated maturity date, while the ratings on the Class C, D, E and F 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 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. 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 UK

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. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

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