Press Release|Structured Credit

KBRA Affirms the Ratings for Carlyle Euro CLO 2019-2 DAC

12 Jul 2024   |   London

Contacts

KBRA UK (KBRA) affirms the ratings for seven classes of notes issued by Carlyle Euro CLO 2019-2 DAC, a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of broadly syndicated senior secured leveraged loans. Since the transaction closed, the rated notes have received timely distributions of interest payments.

Carlyle Euro CLO 2019-2 DOC is a €408.6 million cash flow collateralized loan obligation (“CLO”) managed by CELF LLC (“collateral manager”). The notes were collateralized by a €396.2 million portfolio of broadly syndicated senior secured term loans to corporate borrowers at refinancing.

The CLO closed in August 2019 and was partially refinanced in August 2021. The transaction exited its reinvestment period in February 2024, and the transaction is currently amortizing. The ratings reflect current credit enhancement levels, excess spread, and coverage tests.

As of the June 2024 trustee report, the aggregate principal balance of the collateral obligations is €389.1 million and there is currently a balance in the principal collection account of €5.1 million. There are no defaulted and no discount obligations in the portfolio. The transaction is in compliance with all portfolio profile tests. The current portfolio K-WARF is 2761, which represents a weighted average portfolio credit assessment of around B/B-.

To access rating 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.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

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.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA UK

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. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.

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