KBRA Affirms All Ratings for Blackstone Diversified Alternatives Issuer L.L.C.
14 Jun 2024 | New York
KBRA affirms the outstanding ratings on the Class A and Class B Notes issued by Blackstone Diversified Alternatives Issuer L.L.C. Additionally, KBRA maintains its Positive outlook on the ratings. The affirmation is based on KBRA’s analysis of the reported transaction performance and investment performance of KBRA's review. The Outlook reflects the substantial increase in asset coverage since issuance and as well as the transaction's scheduled amortization period.
As of the Q4’2023 Quarterly Report of the Issuer, the asset coverage of the Class A and Class B Notes are approximately 268.1% and 206.2%, respectively, which reflects minimal change to asset coverage since KBRA’s last review in calendar year 2023. In addition, the Issuer’s Liquidity Ratio has decreased from 1.12x in Q1’2023 to 1.01x. 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, 2023, the Issuer has committed $777.5 million of capital to Drawdown Products, and of this committed amount, $408.2 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. Based on the performance of the underlying collateral and Notes meeting performance expectations, KBRA has affirmed its ratings, while maintaining a Positive outlook.
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