KBRA Upgrades the Ratings Assigned to Class A and Class B Notes Issued by Blackstone Diversified Alternatives Issuer L.L.C.
12 Jun 2025 | New York
KBRA upgrades the outstanding ratings on the Class A and Class B Notes issued by Blackstone Diversified Alternatives Issuer L.L.C. Since prior surveillance, the LTV on both classes has reduced following appreciation in the value of the collateral and amortization of the Class A Notes. The transaction has now entered its amortization period, and has seen repayment of the Notes in accordance with the Amortization Schedule. The Outlook on both classes of Notes has been revised to Stable from Positive following the upgrade.
As of the Q4’2024 Quarterly Report of the Issuer, the asset coverage of the Class A and Class B Notes are approximately 284.4% and 213.3%, respectively, which reflects an increase to asset coverage since KBRA’s last review in calendar year 2024. In addition, the Issuer’s Liquidity Ratio has decreased from 1.10x in Q1’2024 to 1.06x. A failure to maintain these ratios does not constitute an Event of Default, but does place limitations on the Issuer, including a restriction on additional capital commitments to Drawdown Products and equity distributions until such time as the Issuer re-establishes maintenance.
Over the past year, Blackstone has continued to deploy capital to its Drawdown Products. Through December 31, 2024, the Issuer has committed $777.5 million of capital to Drawdown Products, and of this committed amount, $432.7 million has been deployed. Future performance of the Issuer will largely depend on Blackstone’s continued management of the underlying Liquid Products and Drawdown Products and market performance over the remainder of the transaction.
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