Press Release|Structured Credit

KBRA Affirms the Ratings for Deerpath Newbury Partners LLC

20 Mar 2024   |   New York

Contacts

KBRA affirms four classes of notes of Deerpath Newbury Partners LLC.

Deerpath Newbury Partners LLC is a $90.0 million delayed-draw middle market cash flow collateralized loan obligation (“CLO”) managed by Deerpath Capital Management, LP. The CLO originally closed in December 2020, and subsequently issued additional notes in March 2022 (the “additional issuance”). Deerpath Newbury Partners LLC had issued an additional Class A-2 Note, which are pari-passu with the Class A-1 Note (collectively the Class A Notes) and an additional Class B-2 Note, which are pari-passu with the Class B-2 Note (collectively the Class B Notes).

As of the January 2024 trustee report, the aggregate principal balance of the collateral obligations is $90.1 million, there is a principal proceeds balance of $1.1 million. There are $6.9 million defaulted assets with recovery value of $4.5 million. The transaction is in compliance with all portfolio profile tests. The current portfolio K-WARF is 3170, which represents a weighted average portfolio assessment of approximately B-.

The surveillance analysis used information from the trustee report dated as of January 31, 2024 and reflects the distributions that occurred though the January 2024 payment date. All Notes have received timely interest distributions since the transaction has closed.

The ratings are based on information known to KBRA at the time of this publication.

To access rating 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.

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.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003613

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