KBRA Affirms the Ratings for RRE 8 Loan Management DAC
1 Aug 2024 | London
KBRA UK (KBRA) affirms the ratings for five classes of notes issued by RRE 8 Loan Management DAC. Since the transaction closed, the rated notes have received timely distributions of interest payments.
RRE 8 Loan Management DAC is a €507.7 million cash flow collateralized loan obligation (“CLO”) managed by Redding Ridge Asset Management (UK) LLP (“RRAM UK” or the “collateral manager”), an indirect wholly-owned subsidiary of Redding Ridge Asset Management LLC (“RRAM”). The CLO closed in September 2021 and has currently a 2-year reinvestment period remaining. The ratings reflect current credit enhancement levels, excess spread, coverage tests including par value and interest coverage tests, and a reinvestment overcollateralization test.
The collateral in RRE 8 Loan Management DAC mainly consists of broadly syndicated leveraged loans issued by corporate obligors diversified across sectors. As of the July 2024 trustee report, the aggregate principal balance of the collateral obligations is €510.98 million and a negative principal proceeds balance of €14.7 million. There are no defaulted assets but one discount obligation in the portfolio. The transaction is in compliance with all portfolio profile tests. The current portfolio K-WARF is 2573, which represents a weighted average portfolio assessment of around B.
Since the surveillance date in 2023, the Class A Par Value Test has slightly decreased to 144.36% from 144.42%. The ratings on the Class A-1 and A-2 Notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class B, C and D notes consider the ultimate payment of interest and principal.
To access rating and relevant documents, click here.
Click here to view the report.