KBRA Affirms Ratings for RR1 Ltd
12 Apr 2024 | New York
KBRA affirms the ratings for four classes of notes issued by RR1 Ltd, a cash flow collateralized loan obligation (CLO) that closed in June 2021. All notes have received timely interest distributions since closing.
RR1 Ltd is a $735.4 million cash flow CLO managed by Redding Ridge Asset Management LLC (“RRAM”). The notes were collateralized by a $700.0 million portfolio of broadly syndicated senior secured term loans to corporate borrowers at closing. The transaction has 2.2 years remaining in the reinvestment period.
As of the March 2024 trustee report, the aggregate principal balance of the collateral obligations, excluding defaulted and discounted obligations, is $691.4 million and the transaction has a cash balance of -$3.4 million in principal proceeds. There are 5 defaulted obligations with a collective principal balance of $8.9 million, and there is one discount obligation in the portfolio. The adjusted collateral principal amount is $691.7 million. Per the most recent trustee report, the transaction is in compliance with all portfolio profile tests. The current portfolio K-WARF is 2504 which represents a weighted average assessment of around B+/B.
In performing the rating review, KBRA utilized its Structured Credit Global Rating Methodology, the Global Structured Finance Counterparty Methodology and the ESG Global Rating Methodology.
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