KBRA Affirms Four Ratings and Upgrades Two Ratings for Maranon Loan Funding 2020-1, Ltd.
10 Oct 2024 | New York
KBRA affirms the ratings on the Class A Notes, Class A-L Loans, Class B-1 Notes, and Class B-2 Notes, and upgrades the ratings on the Class C Notes and Class D Notes issued by Maranon Loan Funding 2020-1, Ltd.
Maranon Loan Funding 2020-1, Ltd is a $293.4 million cash flow CLO managed by Maranon Capital, L.P. The notes were collateralized by a $350.0 million portfolio of middle market secured term loans to corporate borrowers at closing. The reinvestment period ended in January 2024 and the transaction has started to amortize sequentially.
As of the September 2024 trustee report, the aggregate principal balance of the collateral obligations is $316.0 million, and there is a principal proceeds balance of $4.9 million. There are no defaulted or discount obligations in the portfolio. The transaction is in compliance with all portfolio profile tests. Since KBRA's last review of the transaction in October 2023, the Class A/B OC Ratio Test has increased to 160.6% from 152.7%. The current portfolio K-WARF is 3261, which represents a weighted average portfolio credit assessment of B-.
The principal balance of the Class C Notes has been reduced to 54.87% of the original principal balance due to a cash sweep feature in the interest waterfall. The transaction also exited its reinvestment period in January 2024 and has been amortizing sequentially for two payment dates. As a result, credit enhancement for the Class C and Class D Notes has improved significantly.
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