DBRS Confirms and Assigns Ratings to the Loans Issued by A5 Funding L.P.

DBRS has today confirmed the rating of AA (low) (sf) to the Class A-R Loans (formerly known as the “Revolving Credit Facility”) and has also assigned the rating of AA (low) (sf) to the Class A-T Loans issued by A5 Funding L.P. A5 Funding L.P. is collateralized primarily by a portfolio of U.S. middle market corporate loans and other corporate obligations. A5 Funding L.P. is a credit facility managed by A5 Fund Management LLC, an affiliate of Cerberus Capital Management II, L.P. The DBRS ratings address A5 Funding L.P.’s ability to make timely payments of interest and ultimate payment of principal on or before the Final Maturity Date of May 31, 2018, under the Credit Facility.

The rating actions reflect the following considerations:

(1) The First Amended and Restated Credit Agreement and other related amendment documents dated as of December 7, 2011.

(2) The integrity of the transaction structure.

(3) An assessment of the portfolio credit quality.

(4) Adequate credit enhancement to withstand projected collateral loss rates under various cash flow stress scenarios.

(5) An operational assessment of the origination, servicing and CLO management capabilities of A5 Funding L.P., an affiliate of Cerberus Capital Management II, L.P.

DBRS’s assessment of the portfolio credit quality is based on the analysis of the worst-case scenario, as outlined in the reinvestment criteria of the transaction’s legal documents. Unrated obligors in the analyzed portfolio are assigned private corporate credit estimates by DBRS to assess potential losses.

The rating is based on information provided by the Administrative Agent to DBRS to date.

The principal methodology is Rating Global High-Yield Loan Securitizations, Structured Loans and Tranched Credit Derivatives, which can be found on our website under Methodologies.

This credit rating has been issued outside the European Union (EU) and may be used for regulatory purposes by financial institutions in the EU.

Note:
All figures are in U.S. dollars unless otherwise noted.