DBRS Upgrades Loan Investments B.V. Class A Notes to AA (high)

DBRS Ratings Limited (“DBRS”) has today upgraded the rating of the Class A Senior Deferrable Interest Floating Rate Notes for SCUTE BALI B.V. (“Loan Investments B.V.” or “the Issuer”) from A (low) (sf) to AA (high) (sf). The rating addresses the full and timely payment of interest and principal payable to the Class A Notes on or before the Final Maturity Date of July 2024. DBRS also notes that the Issuer changed its legal name from SCUTE Bali B.V. to Loan Investments B.V. The change in name has no impact on the existing rating.

DBRS has upgraded the rating on the Class A Notes based on its assessment of the credit quality of the investments permitted under the terms of transaction documents, and changes made to the transaction as part of the Amendment Agreement dated 10 July 2012. The amendment reflects the redemption of EUR 255,000,000 of the Class A Notes, changes to the deal counterparties, as well as changes to the portfolio concentrations. Following the amendment the remaining EUR 296,400,000 Class A Notes will be supported by EUR 396,500,000 Subordinated Notes. The Articles of Association were amended on 11 July 2012 to reflect the Issuer’s name change from SCUTE Bali B.V. to Loan Investments B.V.

The Issuer is a collateralized loan obligation (CLO) which closed in March 2008. The transaction is collateralized by a portfolio of secured and unsecured leveraged and corporate loans and other corporate debt obligations extended to European borrowers. Reinvestment of certain principal proceeds is permitted until the reinvestment period ends in July 2014. NIBC Bank N.V. acts as the Investment Manager.

At the time of initial rating, DBRS conducted a rating mapping of NIBC’s internal risk score to DBRS ratings to determine the credit quality for investments permitted by Loan Investments B.V. The rating confirmation reflects the amendments, as well as the review of the eligibility criteria, reinvestment criteria and credit enhancements to withstand projected collateral loss rates under various cash flow stress scenarios.

The sources of information used for this rating include the parties involved in the rating including but not limited to NIBC Bank N.V. as investment manager. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

DBRS does not rate the Subordinated Notes.

The principal methodology is “Rating Methodology for CLOs and CDOs of Large Corporate Credit”, which can be found on www.dbrs.com.

Ratings assigned by DBRS Ratings Limited are subject to EU regulations only.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.

Lead Analyst: Glen Leppert
Surveillance Analyst: Orest Gavrylak
Rating Committee Chair: Jerry van Koolbergen
Initial Rating Date: 4 February 2011
Most Recent Rating Update: 21 February 2012

Notes:
All figures are in EUR unless otherwise noted.