Morningstar DBRS Confirms Credit Ratings on the Notes Issued by BlackRock DLF IX 2019-G CLO, LLC

DBRS, Inc. (Morningstar DBRS) confirmed its following credit ratings on the Class A-1 Notes, Class A-2 Notes, Class B Notes, Class C Notes, Class D Notes, Class E Notes (together, the Secured Notes), and the Class W Notes (together with the Secured Notes, the Notes) issued by BlackRock DLF IX 2019-G CLO, LLC (the Issuer), pursuant to the Amended and Restated Note Purchase and Security Agreement (the NPSA) dated December 23, 2020, as amended by the Amendment Agreement (the Amendment), dated August 18, 2023, among the Issuer; U.S. Bank Trust Company, National Association (rated AA stb / R-1 (high) stb by Morningstar DBRS) as the Collateral Agent, Collateral Administrator, Information Agent, and Note Agent; U.S. Bank National Association (rated AA stb / R-1 (high) stb by Morningstar DBRS) as Custodian and Document Custodian and the Purchasers referred to therein:

--Class A-1 Notes at AAA (sf)
--Class A-2 Notes at AA (sf)
--Class B Notes at A (high) (sf)
--Class C Notes at A (sf)
--Class D Notes at BBB (sf)
--Class E Notes at BB (sf)
--Class W Notes at B (sf)

The credit ratings on the Class A-1 Notes and Class A-2 Notes address the timely payment of interest (excluding the interest payable at the Post-Default Rate, as defined in the NPSA) and the ultimate repayment of principal on or before the Stated Maturity of October 16, 2031.

The credit ratings on the Class B Notes, Class C Notes, Class D Notes, Class E Notes, and Class W Notes address the ultimate payment of interest (excluding the interest payable at the Post-Default Rate, as defined in the NPSA) and the ultimate repayment of principal on or before the Stated Maturity of October 16, 2031. The Class W Notes have a fixed-rate coupon that is lower than the spread/coupon of some of the more-senior Notes. The Class W Notes also benefit from the Class W Note Payment Amount, which allows for principal repayment of the Class W Notes with collateral interest proceeds, in accordance with the Priority of Payments.

Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance.

CREDIT RATING RATIONALE/DESCRIPTION
The credit rating action is a result of Morningstar DBRS' review of the transaction performance. The Reinvestment Period end date is October 16, 2025. The Stated Maturity is October 16, 2031.
For the transaction performance review, Morningstar DBRS applied the Current Profile analysis, which is based on the actual pool of assets as reported in the trustee report dated as of July 15, 2024. The Current Profile analysis, which accounted for a failing Minimum Weighted Average Coupon test (current 3.85% vs required 6.00%), produced satisfactory results. Given that the Notes are performing within Morningstar DBRS' expectation, the credit ratings were confirmed.

In its review, Morningstar DBRS also considered the following aspects of the transaction:
(1) The transaction's capital structure and the form and sufficiency of available credit enhancement.
(2) Relevant credit enhancement in the form of subordination and excess spread.
(3) The credit quality of the underlying collateral and the ability of the transaction to reinvest Principal Proceeds into new Collateral Obligations, subject to the Eligibility Criteria, which include testing the Concentration Limitations, Collateral Quality Tests, and Coverage Tests.
(4) Morningstar DBRS' assessment of the origination, servicing, and CLO management capabilities of BlackRock Capital Investment Advisors, LLC.
(5) The legal structure as well as legal opinions addressing certain matters of the Issuer and the consistency with the Morningstar DBRS "Legal Criteria for U.S. Structured Finance" methodology.

Some of the performance metrics that Morningstar DBRS reviewed are listed below:
Collateral Quality Tests
Minimum Weighted Average Spread: Actual 6.13%; Required 5.75%
Minimum Weighted Average Coupon: Actual 3.85%; Required 6.00%
Maximum Risk Score: Actual 38.24%; Required 39.88%
Minimum Weighted Average Recovery Rate Test: Actual 48.3%; Required 47.5%
Minimum Diversity Score Test: Actual 41; Required 30

Coverage Tests
Class A-2 Overcollateralization Ratio: Actual 160.13%; Required 143.97%
Class B Overcollateralization Ratio: Actual 145.12%; Required 132.18%
Class C Overcollateralization Ratio: Actual 137.51%; Required 125.71%
Class D Overcollateralization Ratio: Actual 128.50%; Required 119.01%
Class E Overcollateralization Ratio: Actual 121.54%; Required 110.28%

Class A-2 Interest Coverage: Actual 238.45%; Required 145.00%
Class B Interest Coverage: Actual 213.01%; Required 140.00%
Class C Interest Coverage: Actual 199.05%; Required 120.00%
Class E Interest Coverage: Actual 181.53%; Required 115.00%
Class D Interest Coverage: Actual 164.76%; Required 110.00%
Class W Interest Coverage: Actual 159.13%; Required 100.00%

Morningstar DBRS analyzed the transaction using the Morningstar DBRS CLO Insight Model and its proprietary cash flow engine, which incorporated assumptions regarding principal amortization, amount of interest generated, principal pre-payments, default timings, and recovery rates, among other credit considerations referenced in the Morningstar DBRS "Global Methodology for Rating CLOs and Corporate CDOs" (February 23, 2024; https://dbrs.morningstar.com/research/428544). Model-based analysis produced satisfactory results, which supported the respective confirmations of the credit ratings on the Notes.

Some particular strengths of the transaction are (1) the collateral quality, which consists mostly of senior-secured floating-rate Middle Market loans and (2) the adequate diversification of the portfolio of collateral obligations (the current DScore of 41 compared with test level of 30). Some challenges were identified as follows: (1) the weighted-average credit quality of the underlying obligors may fall below investment grade and may not have public ratings and (2) the underlying collateral portfolio may be insufficient to redeem the Notes in an Event of Default.

Morningstar DBRS analyzed the actual obligations in the pool as reported in the trustee report on July 15, 2024, accounting for a failing Minimum Weighted-Average Coupon test (3.846% vs required 6.000%) and two defaulted obligations (the total par amount of $4.87MM). Morningstar DBRS analyzed each loan in the pool separately by inputting its tenor, Morningstar DBRS rating, country of origin, and industry into the CLO Insight Model. Considering the transaction performance, its legal aspects, and structure, Morningstar DBRS confirmed its credit ratings on the Notes issued by BlackRock DLF IX 2019-G CLO, LLC.

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

Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS
There were no Environmental/Social/Governance factor(s) that had a significant or relevant effect on the credit analysis.

A description of how Morningstar DBRS considers ESG factors within the Morningstar DBRS analytical framework can be found in the Morningstar DBRS Criteria: Approach to Environmental, Social, and Governance Factors in Credit Ratings (August 13, 2024; https://dbrs.morningstar.com/research/437781).

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

The principal methodology applicable to the credit ratings is Global Methodology for Rating CLOs and Corporate CDOs (February 23, 2024; https://dbrs.morningstar.com/research/428544) and the CLO Insight Model v.1.0.2.0.

Other methodologies referenced in this transaction are listed at the end of this press release.

The credit rating was initiated at the request of the rated entity.

The rated entity or its related entities did participate in the credit rating process for this credit rating action.

Morningstar DBRS had access to the accounts, management and other relevant internal documents of the rated entity or its related entities in connection with this credit rating action.

This is a solicited credit rating.

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

These credit ratings are endorsed by DBRS Ratings Limited for use in the United Kingdom, and by DBRS Ratings GmbH for use in the European Union, respectively. The following additional regulatory disclosures apply to endorsed credit ratings:

The last credit rating action on this issuer took place on November 29, 2023, when Morningstar DBRS confirmed the credit ratings on the Notes.

For further information on Morningstar DBRS historical default rates published by the European Securities and Markets Authority (ESMA) in a central repository, see: https://registers.esma.europa.eu/cerep-publication. For further information on Morningstar DBRS historical default rates published by the Financial Conduct Authority (FCA) in a central repository, see https://data.fca.org.uk/#/ceres/craStats.

Lead Analyst: Oxana Rhybak, Vice President, Sector Lead, U.S. Structured Credit
Rating Committee Chair: Jerry van Koolbergen, Managing Director, U.S. Structured Credit
Initial Rating Date: October 17, 2019

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The credit rating methodologies used in the analysis of this transaction can be found at: https://dbrs.morningstar.com/about/methodologies.

Operational Risk Assessment for Collateralized Loan Obligations (CLOs) and Corporate Collateralized Debt Obligations (CDOs) (August 23, 2024; https://dbrs.morningstar.com/research/438315)

Interest Rate Stresses for U.S. Structured Finance Transactions (February 26, 2024; https://dbrs.morningstar.com/research/428623)

Legal Criteria for U.S. Structured Finance (April 15, 2024; https://dbrs.morningstar.com/research/431205)

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