DBRS Assigns Ratings to Class A-R, A-T and B Loans Issued by ABPCI Direct Lending Funding V LLC

DBRS, Inc. (DBRS) has today assigned ratings of AA (sf) to the Class A-R Loans and Class A-T Loans to be issued under ABPCI Direct Lending Funding V LLC (ABPCI V) up to the Total Class A-R Commitment of $100,000,000 and Total Class A-T Commitment of $100,000,000. DBRS has also assigned a rating of A (sf) to the Class B Loans to be issued under ABPCI V up to the Total Class B Commitment of $20,400,000.

The Class A-R Loans, Class A-T Loans and Class B Loans (together, the Loans) were issued pursuant to the Credit Agreement dated February 16, 2017, among ABPCI V as Borrower; Natixis, New York Branch as Administrative Agent; U.S. Bank National Association (rated AA (high) with a Stable trend by DBRS) as Collateral Agent, Collateral Administrator and Custodian; and the Lenders thereto.

The Loans will be collateralized primarily by a portfolio of U.S. middle-market corporate loans and other corporate obligations. ABPCI V is managed by AB Private Credit Investors LLC (ABPCI), an affiliate of AllianceBernstein L.P.

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

The ratings reflect the following:
(1) The Credit Agreement dated February 16, 2017.
(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 and collateralized loan obligation management capabilities of ABPCI.

To assess portfolio credit quality, DBRS provides a credit estimate or internal assessment for each non-financial corporate obligor in the portfolio (not rated by DBRS). Credit estimates are not ratings; rather, they represent a model-driven default probability for each obligor, which is used to assign a rating to the transaction.

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

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

The principal methodology is Rating CLOs and CDOs of Large Corporate Credit, which can be found on dbrs.com under Methodologies.