KBRA Assigns Preliminary Ratings to Anchorage Credit Funding 17, Ltd.
3 Oct 2024 | New York
KBRA assigns preliminary ratings to four classes of notes issued by Anchorage Credit Funding 17, Ltd. (“Anchorage 17”), a cash flow collateralized debt obligation backed by a diversified portfolio of broadly syndicated corporate loans and high yield bonds.
Anchorage 17 is a $305.1 million cash flow collateralized debt obligation managed by Anchorage Collateral Management, LLC (“Anchorage” or the “collateral manager”). Proceeds from the issuance of the notes will be used to purchase a $300.0 million portfolio of broadly syndicated senior secured term loans and high yield bonds to corporate borrowers.
The deal will have a 5-year reinvestment period and the portfolio’s credit quality will be governed by a KBRA Asset Quality Matrix alongside KBRA’s Portfolio Analysis Tool (K-PAT). The legal final maturity is on October 22, 2042. The ratings reflect initial credit enhancement levels, excess spread, and coverage tests including overcollateralization ratio and interest coverage tests.
The collateral in Anchorage 17 will mainly consist of broadly syndicated leveraged loans and high yield bonds issued by corporate obligors diversified across sectors. The total portfolio par amount is $300.0 million with exposure to 186 obligors. The obligors in the portfolio have a K-WARF of 2564, which represents a weighted average portfolio credit assessment of approximately B / B-.
Anchorage, founded in 2003, is a global credit platform with over $22.5 billion in combined assets under management across evergreen funds, drawdown funds, CLOs & CDOs, and custom funds/accounts. This includes the performing credit and collateralized loan and debt obligation (“CLO/CDO”) platform, launched in 2012, which currently has $16.9 billion in structured credit AUM across 39 U.S. CLOs & CDOs and €2.9 billion AUM in 7 European CLOs. The CDOs managed by Anchorage are typically backed by a mix of corporate senior secured leveraged loans and high yield bonds.
The rating on the Class A Notes considers timely payment of interest and ultimate payment of principal by the applicable stated maturity date. KBRA’s ratings on the Class D-2, Class E and Class F Notes consider ultimate payment of interest and principal by the applicable stated maturity date.
KBRA analyzed the transaction using the 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.
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