DBRS Confirms Ratings on Loans and Notes of ABPCI Direct Lending Funding V LLC

DBRS, Inc. (DBRS) confirmed the ratings of AA (sf) on the Class A-R Loans and Class A-T Loans issued by 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 also confirmed the ratings of A (sf) on the Class B Loans and the Class B Notes issued by ABPCI V, together up to the Total Class B Commitment of $20,400,000.

The Class B Notes (the Notes) were issued pursuant to the Note Purchase Agreement dated as of February 12, 2018, by and among ABPCI V as Issuer; U.S. Bank National Association (the Bank; rated AA (high) with a Stable trend by DBRS) as Collateral Agent and Note Agent; and the Purchasers party thereto, in connection with the Credit Agreement dated as of February 16, 2017 (as amended by Amendment No. 1 to the Credit Agreement dated as of January 24, 2018, and Amendment No. 2 to the Credit Agreement dated as of February 12, 2018).

The Class A-R Loans, Class A-T Loans and Class B Loans (together, the Loans) were issued pursuant to the Credit Agreement dated as of February 16, 2017 (as amended by Amendment No. 1 to Credit Agreement dated as of January 24, 2018, and Amendment No. 2 to the Credit Agreement dated as of February 12, 2018), by and among ABPCI V as Borrower; Natixis, New York Branch as Administrative Agent; the Bank as Collateral Agent, Collateral Administrator and Custodian; and the Lenders thereto.

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

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

To assess portfolio credit quality, DBRS provides a credit estimate or internal assessment for each non-financial corporate obligor in the portfolio where a public rating is not available. 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.

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 dbrs.com under Methodologies & Criteria.

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

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

This rating is endorsed by DBRS Ratings Limited for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:

Each of the principal asset class methodologies employed in the analysis addressed one or more particular risks or aspects of the rating and were factored into the rating decision, specifically Rating CLOs and CDOs of Large Corporate Credit.

The last rating action on this transaction took place on February 13, 2018.

This rating included participation by the rated entity or any related third party. DBRS had access to accounts, management and other relevant internal documents for the rated entity or a related third party.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Lead Analyst: Quan Yoon, Assistant Vice President, U.S. Structured Credit
Rating Committee Chair: Jerry van Koolbergen, Managing Director, U.S. Structured Credit
Initial Rating Date: February 22, 2017

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

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