Press Release|Structured Credit

KBRA Affirms the Ratings for Diameter Capital CLO 1 Ltd.

16 Jul 2024   |   New York

Contacts

KBRA affirms four ratings of the notes issued by Diameter Capital CLO 1 Ltd., a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of broadly syndicated senior secured leveraged loans. Since the transaction closed, the rated notes have received timely distributions of interest payments.

Diameter Capital CLO 1 Ltd. is a $451.7 million cash flow CLO managed by Diameter CLO Advisors LLC (the “collateral manager”). The CLO closed in July 2021 and has approximately 2 years remaining in the reinvestment period. The notes were collateralized by a $450 million portfolio of broadly syndicated senior secured term loans to corporate borrowers at closing.

As of the June 2024 trustee report, the aggregate principal balance of the collateral obligations is $458.0 million and there is a negative principal proceeds balance of $4.6 million. There are no defaulted or discount obligations in the portfolio. The transaction is in compliance with all coverage tests and collateral quality tests. The current portfolio K-WARF is 2598, which represents a weighted average portfolio credit assessment of B.

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: 1005109

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