KBRA Affirms Ratings for PineBridge Private Credit III Parallel RFF, L.P.
31 Oct 2025 | New York
KBRA affirms the A- rating to the Class A Senior Notes (“Class A Notes”) and BBB- rating to the Class B Subordinated Notes (“Class B Notes”, and together the “Notes”) issued by PineBridge Private Credit III Parallel RFF, L.P. (the “Issuer”or the “Borrower”). The rating Outlook is Stable. Proceeds of the Notes along with the Equity are used to finance the Issuer’s share of capital commitments to PineBridge Private Credit III Parallel, L.P. (“Master Fund”), of which it is a limited partner.
Key Credit Considerations
Asset Coverage: The asset coverage for the Class A Notes and the Class B Notes is 189.7% (52.7% LTV) and 130.4% (76.7% LTV), respectively.
Asset Quality: The underlying Master Fund's assets consist of loans to US-based middle market companies with annual EBITDA ranging from $10 million to $50 million. KBRA evaluated the loans in the Master Fund's portfolio as of March 31, 2025 and determined that the portfolio has a weighted average asset quality of equivalent to ‘ccc+’ creditrisk. KBRA's current asset quality assessment is consistent with both issuance and last year’s surveillance.
Portfolio Valuation: The Master Fund holds investments for which no market exists or are thinly traded. As a result, the valuations for these investments are generally reliant on the valuation methodologies of PineBridge as well as valuations provided by independent third-party valuations providers, which are received on at least an annual basis. To that extent, assigned values can be meaningfully different from actual realized values when investments are liquidated.
Manager Experience and Track Record: PineBridge Investments (“PineBridge,” the “Firm”) was established in 1996 as a subsidiary of American International Group (“AIG”) Investments. In 2009, PineBridge was sold to Pacific Century Group (“PCG”), an Asia domiciled investment firm. PineBridge has since grown to become a global asset manager focused on private capital, with a total of $199.9 billion in assets under management (“AUM”) as of June 30, 2025.
PineBridge’s AUM, as of June 30, 2025, was diversified across Fixed Income ($84.9 billion), Equities ($93.5 billion), Multi Asset ($16.5 billion), and Alternative Investments ($12.6 billion). As of June 30, 2025, PineBridge employed over 700 employees, including approximately 220 investment professionals across 24 global offices.
Rating Sensitivities
Underperformance of Fund Collateral: A rating downgrade may occur if the Master Fund collateral exhibits sustained under performance, LTV increases, or sustained periods of interest deferrals due to Noteholders.
Significant Increase in Asset Coverage: A rating upgrade may occur if there is stable Master Fund performance and significant de-leveraging of the Notes driven by repayment of the Notes, thereby increasing asset coverage/decreasing LTV.
Underlying Borrower Performance: A rating upgrade may occur if the overall weighted average credit quality of the underlying borrowers increases over time.
Final Portfolio Composition Inconsistent with Expectations: In the event the final portfolio does not reflect a similar size, diversity, yield, and credit profile as expected, KBRA’s view of the underlying loans’ asset quality may change, which may impact the ratings assigned.
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