KBRA Affirms Ratings for Guggenheim MM CLO 2021-3, Ltd.

KBRA affirms ratings for five classes of notes issued Guggenheim MM CLO 2021-3, Ltd. (Guggenheim 2021-3), a cash flow collateralized loan obligation (CLO) backed by a diversified portfolio of middle market and broadly syndicated corporate loans.

Guggenheim 2021-3 is managed by Guggenheim Corporate Funding, LLC (“GCF” or the “collateral manager”). The CLO originally closed in December 2021 and has approximately 1.25 years remaining in its reinvestment period. The ratings reflect current credit enhancement levels, excess spread, coverage tests including par value and interest coverage tests.

The collateral in Guggenheim 2021-3 mainly consists of middle market and broadly syndicated leveraged loans issued by corporate obligors diversified across sectors. The adjusted principal balance is $403.8 million, which is above the target par of $400 million. The current portfolio K-WARF is 3269, which represents a weighted average portfolio assessment of B-. As of the October 2024 trustee report, the Class D Notes have amortized by $29.7 million, or 43.7% of the original Class D Note balance, from excess interest proceeds.

The rating 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. All Notes have received timely interest distributions since the transaction has closed.

To access ratings and relevant documents, click here.

Click here to view the report.

Methodologies