DBRS Assigns AA (sf) Rating to the Loans issued by FS Senior Funding LLC

DBRS, Inc. (“DBRS”) has today assigned a rating of AA (sf) to the Loans issued by FS Senior Funding LLC up to a Total Commitment of $100,000,000 pursuant to the Credit Agreement dated as of November 1, 2013. The Loans are collateralized primarily by a portfolio of senior-secured broadly syndicated corporate loans and other corporate obligations. FS Senior Funding LLC is managed by Fifth Street Senior Floating Rate Corp. (the “Collateral Manager”), a business development company (“BDC”) set up by Fifth Street Management LLC (the “Investment Advisor”). The DBRS Rating addresses FS Senior 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 November 1, 2013 along with all ancillary documentation.

(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 Fifth Street Management LLC.

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.