Press Release|Structured Credit
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KBRA Assigns Ratings to Cedar Crest 2026-2 LLC

22 Sep 2026   |   New York

Contacts

KBRA assigns ratings to five classes of notes issued by Cedar Crest 2026-2 LLC ("Cedar Crest 2026-2"), an $815 million revolving cash flow collateralized loan obligation ("CLO") serviced by Eldridge Structured Credit Advisers, LLC ("Eldridge" or the "manager").

The Notes will be collateralized by a $811.0 million portfolio of primarily middle market and broadly syndicated senior secured loans to corporate borrowers, a substantial portion of which are expected to be Variable Funding Collateral Obligations (“VFCOs”). The Notes will be revolving and may be drawn and repaid, pro rata, to acquire additional collateral obligations and/or fund commitments of existing revolving collateral in the portfolio. After the reinvestment period, principal proceeds received as the result of a sale, maturity, or permanent paydown of collateral obligations will be applied to repay the rated Notes sequentially. The ratings reflect initial credit enhancement levels, excess spread, and coverage tests including overcollateralization ratio and interest coverage.

The current portfolio has exposure to 152 obligors. The obligors in the portfolio have a K-WARF of 3400, which represents a weighted average portfolio credit assessment of approximately B-.

KBRA's ratings on the Class A and B Notes considers the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class C, D, and E Notes consider the ultimate payment of interest and principal by the applicable stated maturity date.

To access ratings 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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