Press Release|Structured Credit

KBRA Affirms Ratings for RR1 Ltd

12 Apr 2024   |   New York


KBRA affirms the ratings for four classes of notes issued by RR1 Ltd, a cash flow collateralized loan obligation (CLO) that closed in June 2021. All notes have received timely interest distributions since closing.

RR1 Ltd is a $735.4 million cash flow CLO managed by Redding Ridge Asset Management LLC (“RRAM”). The notes were collateralized by a $700.0 million portfolio of broadly syndicated senior secured term loans to corporate borrowers at closing. The transaction has 2.2 years remaining in the reinvestment period.

As of the March 2024 trustee report, the aggregate principal balance of the collateral obligations, excluding defaulted and discounted obligations, is $691.4 million and the transaction has a cash balance of -$3.4 million in principal proceeds. There are 5 defaulted obligations with a collective principal balance of $8.9 million, and there is one discount obligation in the portfolio. The adjusted collateral principal amount is $691.7 million. Per the most recent trustee report, the transaction is in compliance with all portfolio profile tests. The current portfolio K-WARF is 2504 which represents a weighted average assessment of around B+/B.

In performing the rating review, KBRA utilized its Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty Methodology and the ESG Global Rating Methodology.

To access rating and relevant documents, click here.

Click here to view the report.

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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

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: 1003878

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