DBRS Assigns Provisional Ratings to the Class A-1 Notes and the Class A Loans Issued by Cerberus Loan Funding XXIV L.P.

DBRS, Inc. (DBRS) assigned the following provisional rating to the Class A-1 Senior Secured Floating-Rate Notes (the Class A-1 Notes) to be issued by Cerberus Loan Funding XXIV L.P. (the Issuer) pursuant to the Indenture to be dated as of August [7], 2018, among Cerberus Loan Funding XXIV L.P., as Issuer, Cerberus LFGP XXIV, LLC, as General Partner, Cerberus Co-Issuer XXIV LLC, as Co-Issuer, Cerberus Business Finance, LLC, as Servicer and Wells Fargo Bank, National Association, as Trustee. DBRS also assigned the following provisional rating to the Class A Senior Secured Loans (the Class A Loans) incurred by the Issuer under the Class A Loan Agreement, to be dated as of August [7], 2018, among the Issuer, Co-Issuers, the General Partner, Wells Fargo Bank, National Association as the Class A Loan Agent and each Class A Lender:

-- Class A-1 Notes at AAA (sf)
-- Class A Loans at AAA (sf)

The provisional ratings on the Class A-1 Notes and the Class A Loans address the timely payment of interest and the ultimate payment of principal on or before the Stated Maturity (as defined in the Indenture referred to above).

The debt issued by Cerberus Loan Funding XXIV L.P. will be collateralized primarily by a portfolio of U.S. middle-market corporate loans. Cerberus Loan Funding XXIV L.P. will be managed by Cerberus Business Finance, LLC, as Servicer.

The provisional ratings reflect the following:

(1) The draft Indenture to be dated as of August [7], 2018.
(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 Cerberus Business Finance, LLC.

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 that is used in assigning a rating to the facility.

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

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