KBRA Affirms Ratings to Cedar Crest 2021-2 LLC
3 Oct 2024 | New York
KBRA affirms the ratings of the notes issued by Cedar Crest 2021-2 LLC, a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of middle market and broadly syndicated senior secured leveraged loans and bonds. Since the transaction closed, the rated notes have received timely distributions of interest payments.
Cedar Crest 2021-1 LLC is a $736.9 million cash flow collateralized loan obligation (“CLO”) serviced by Panagram Structured Asset Management, LLC (“Panagram” or the “Servicer”). The notes are collateralized by a $721.7 million portfolio of middle market and broadly syndicated senior secured term loans to corporate borrowers.
The CLO closed on December 20, 2021 and its reinvestment period ended on January 17, 2024. The current portfolio has a weighted average time to maturity of 4.0 years. The ratings reflect current credit enhancement levels, excess spread, and coverage tests.
As of the September 2024 trustee report, the aggregate principal balance of the collateral obligations is $720.5 million with a principal proceeds balance of $16.4 million. There are four defaulted obligors and one discount obligation in the portfolio. The transaction is in compliance with all portfolio profile tests except for the KBRA Rating Factor Test. The current portfolio K-WARF is 3495, which represents a weighted average portfolio credit assessment of around B-.
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