DBRS Assigns AAA (sf) Rating to the Loans issued by Energy Funding LLC

DBRS, Inc. (“DBRS”) has today assigned a rating of AAA (sf) to the Loans issued by Energy Funding LLC up to a Total Commitment of $150,000,000 pursuant to the Credit Agreement dated as of July 11, 2013. The Loans are collateralized by a portfolio of mostly senior-secured middle-market corporate loans and other corporate obligations. Energy Funding LLC is managed by FS Energy and Power Fund (the “Collateral Manager”), a business development company (“BDC”) set up by FS Investment Advisor, LLC (the “Investment Advisor”) and GSO Capital Partners LP (the “Sub-Advisor”). The DBRS Rating addresses Energy Funding LLC’s ability to make timely payments of interest and ultimate payment of principal on or before the Stated Maturity of the Loans.

The rating reflects the following:

(1) The Credit Agreement dated as of July 11, 2013.

(2) The integrity of the transaction structure.

(3) DBRS’s assessment of the portfolio quality.

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

(5) DBRS’s assessment of the origination, servicing and CLO management capabilities of FS Energy and Power Fund, FS Investment Advisor, LLC and GSO Capital Partners LP.

To assess portfolio credit quality, DBRS provides a credit estimate for certain U.S. middle market non-financial corporate obligors in the portfolio. Credit estimates are not ratings; rather they represent a model-driven default probability for each obligor that is used in assigning a rating to the Loans.

The principal methodology is Rating Methodology for CLOs and CDOs of Large Corporate Credit, 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.