DBRS Confirms AA (sf) Ratings on the Class A-R and Class A-T Loan of Cerberus Redwood Levered B LLC
Structured CreditDBRS, Inc. (DBRS) confirmed the ratings of AA (sf) on the Class A-R Loans and the Class A-T Loans (together, the Loans) issued by Cerberus Redwood Levered B LLC (Cerberus Redwood) up to the total commitment permitted under the Loans of $125,000,000.
The Loans were issued pursuant to the Credit Agreement dated as of June 12, 2017 (as amended by Amendment No. 1 to Credit Agreement and Amendment No. 2 to the Credit Agreement dated as of November 9, 2017, and December 14, 2018, respectively), among Cerberus Redwood B LLC as Borrower; Cerberus Redwood Levered Loan Opportunities Fund B, L.P. as Servicer; Natixis, New York Branch as Administrative Agent; and U.S. Bank National Association as Collateral Agent and Custodian.
The confirmation of the ratings on the Loans reflects the execution of Amendment No. 3 to the Credit Agreement dated as of April 25, 2019.
DBRS considers Cerberus Redwood Levered Loan Opportunities Fund B, L.P to be an acceptable collateralized loan obligation manager.
The rating confirmations by DBRS do not signify the approval of the amendment by DBRS or an opinion by DBRS as to whether the amendment is beneficial or detrimental to the holders of the securities.
The ratings address Cerberus Redwood’s ability to make timely payments of interest and ultimate payment of principal on or before the Final Maturity Date (as defined in the Credit Agreement referred to above).
The Loans will be collateralized primarily by a portfolio of U.S. middle-market corporate loans and other corporate obligations. Cerberus Redwood is serviced by Cerberus Redwood Levered Loan Opportunities Fund B, L.P., an affiliate of Cerberus Capital Management II, L.P.
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 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:
The last rating action on this transaction took place on December 14, 2018, when DBRS confirmed the ratings on the Loans.
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, Head of U.S. Structured Credit
Initial Rating Date: June 16, 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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