DBRS Upgrades and Assigns Ratings to Loans Issued by Garrison Middle Market II LP

DBRS, Inc. (DBRS) has today taken the following rating actions on the Class A-R Loans, Class A-T-1 Loans, Class A-T-2 Loans and Class B Loans (collectively, the Loans) issued by Garrison Middle Market II LP (Garrison):

-- Class A-R Loans upgraded to AAA (sf) from AA (sf)
-- Class A-T-1 Loans assigned rating of AAA (sf)
-- Class A-T-2 Loans assigned rating of AAA (sf)
-- Class B Loans assigned rating of A (sf)

The ratings on the Loans are assigned pursuant to the Amended and Restated Credit Agreement dated as of August 10, 2016, among Garrison as Borrower; Garrison Middle Market II GP LLC as General Partner; Natixis, New York Branch, as Administrative Agent; U.S. Bank National Association as Collateral Agent and Custodian; and the Lenders party thereto.

The ratings on the Class A-R Loans, Class A-T-1 Loans and Class A-T-2 Loans address the timely payment of interest and the ultimate payment of principal on or before the Stated Maturity (as defined in the Amended and Restated Credit Agreement referred to above). The rating on the Class B Loans addresses the ultimate payment of interest and the ultimate payment of principal on or before the Stated Maturity (as defined in the Amended and Restated Credit Agreement referred to above).

The Loans issued by Garrison will be collateralized primarily by a portfolio of U.S. middle-market corporate loans. Garrison will be managed by Garrison Middle Market II GP LLC.

The ratings reflect the following:

(1) The Amended and Restated Credit Agreement dated August 10, 2016.
(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 collateralized loan obligation management capabilities of Garrison Middle Market II GP LLC.

To assess portfolio credit quality, DBRS provides a credit estimate or internal assessment for each non-financial corporate obligor in the portfolio that is not rated by DBRS. 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 facility.

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

The applicable methodology is Rating CLOs and CDOs of Large Corporate Credit, which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities.

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