DBRS Morningstar Confirms the Ratings on the Cerberus FSBA Levered LLC Class A-R Loans and Class A-T Loans

DBRS, Inc. (DBRS Morningstar) confirmed the AA (sf) ratings on the Class A-R Loans and the Class A-T Loans (together, the Loans) issued by Cerberus FSBA Levered LLC. The Loans were issued pursuant to the Credit Agreement dated as of October 11, 2016 (as amended by Amendment No. 1 dated as of July 26, 2017, Amendment No. 2 dated as of March 6, 2018, and Amendment No. 3 dated as of March 4, 2020), among Cerberus FSBA Levered LLC as the Borrower; Cerberus FSBA Holdings LLC as the Servicer; Natixis, New York Branch as the Administrative Agent; and U.S. Bank National Association as the Collateral Agent and Custodian.

The ratings address Cerberus FSBA Levered LLC’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 are collateralized primarily by a portfolio of U.S. middle-market corporate loans and other corporate obligations. The Servicer is Cerberus FSBA Holdings LLC, an affiliate of Cerberus Capital Management II, L.P. DBRS Morningstar considers Cerberus Capital Management II, L.P. as an acceptable collateralized loan obligation manager.

To assess portfolio credit quality, DBRS Morningstar provides a credit estimate or internal assessment for each nonfinancial corporate obligor in the portfolio (not rated by DBRS Morningstar). Credit estimates are not ratings; rather, they represent a model-driven default probability for each obligor that DBRS Morningstar uses in assigning ratings 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 Morningstar 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 March 6, 2019.

For further information on DBRS Morningstar 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: Arthur Krivoruk, Analyst, U.S. Structured Credit
Rating Committee Chair: Jerry van Koolbergen, Managing Director, U.S. Structured Credit
Initial Rating Date: November 11, 2016

For more information on this credit or on this industry, visit www.dbrs.com or contact us at [email protected].

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