Press Release|Structured Credit
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KBRA Affirms the Ratings for Ares European Direct Lending CLO 1 Sarl

1 Jul 2026   |   London

Contacts

KBRA UK (KBRA) affirms the ratings for four classes of Notes issued by Ares European Direct Lending CLO 1 Sarl. All Notes have received timely interest distributions since the transaction has closed.

Ares European Direct Lending CLO 1 Sarl is a £305.1 million European cash flow CLO managed by Ares Management Limited (“Ares” or the “collateral manager”), a wholly owned subsidiary of Ares Management LLC (“AMLLC”). The facility closed on 3 July 2025, and currently has a 3.8-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 overcollateralisation test.

The collateral in Ares European Direct Lending CLO 1 Sarl will mainly consist of middle market loans issued by corporate obligors diversified across sectors. As of the April 2026 trustee report, the aggregate principal balance of the collateral obligations is £269.9 million and a principal proceeds balance of £12.7 million. There are no defaulted or discount obligations in the portfolio and the transaction is in compliance with all portfolio profile tests. The current portfolio K-WARF is 3091, which represents a weighted average portfolio assessment of around B-.

Since closing in July 2025, the Class A Par Subordination has remained steady at 46.25% from 45.75%. The ratings on the Class A, B, C, and D Notes consider the timely payment of interest and the ultimate payment of principal by the applicable legal final maturity date.

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 1st Floor, Marble Arch House, 66 Seymour Street, London W1H 5BT, England.

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