Press Release|Structured Credit

KBRA Affirms Ratings for RRE 1 Loan Management DAC

27 Mar 2024   |   London


KBRA UK (KBRA) affirms the ratings for five classes of notes issued by RRE 1 Loan Management DAC. All notes have received timely interest distributions since the transaction closed.

RRE 1 Loan Management DAC is a €602.5 million European cash flow CLO managed by Redding Ridge Asset Management (UK), LLP (“RRAM UK” or the “collateral manager”), an indirect wholly-owned subsidiary of Redding Ridge Asset Management LLC (“RRAM”). The CLO originally closed in April 2019. KBRA rated this transaction when the CLO reset certain terms, including the stated maturity, non-call period, reinvestment period, and note interest rates in April 2021. The CLO has one year of reinvestment period left. The ratings reflect current credit enhancement levels, excess spread, coverage tests including par value and interest coverage tests, and a reinvestment overcollateralization test.

As of the February 2024 trustee report, the aggregate principal balance of the collateral obligations is €604.03 million, with a negative principal-proceeds balance of €3.0 million. There are no defaulted assets and €3.87 million discount obligations in the portfolio, and the transaction complies with all portfolio profile tests. The current portfolio K-WARF is 2575 which represents a weighted average portfolio assessment of around B.

Since the 2023 surveillance date, the Class A Par Value Test has increased to 143.88% from 143.74%. The ratings on the Class A-1-R and A-2-R Notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while ratings on the Class B-R, C-R, and D-R notes consider the ultimate payment of interest and principal.

To access rating and relevant documents, click here.

Click here to view the report.



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

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

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.


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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