Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six classes of notes issued by Maranon Loan Funding 2021-2, Ltd., a cash flow secured loan obligation (CLO) backed by a diversified portfolio of corporate loans of the middle market.
Maranon Loan Funding 2021-2, Ltd. is managed by Maranon Management LLC (Maranon or the Collateral Manager) and will have a four year reinvestment period. The final legal deadline is July 15, 2033. Ratings reflect initial levels of credit enhancement, excess spreads and coverage tests, including over-collateralization ratio and interest coverage tests.
The guarantee will mainly consist of leveraged middle market loans issued by debtor companies diversified in different sectors. The nominal amount of the target portfolio is $ 625 million with exposure to 86 debtors. Debtors in the portfolio have a K-WARF of 3031, which represents a portfolio weighted average credit rating of approximately B-.
Maranon Management LLC is a private credit manager and CLO established in 2007 and a subsidiary of Eldridge Industries, LLC. As of May 2021, Maranon had raised approximately $ 5.9 billion in private credit capital, including $ 2.4 billion in six US mid-market CLOs.
The preliminary ratings for Class AR-1 Notes, AR-2 Notes and BR Notes reflect the timely payment of interest and final payment of principal on the applicable stated maturity date, while the preliminary ratings for categories CR, DR and ER The Notes reflect the final payment of interest and principal.
KBRA analyzed the transaction using Global structured credit rating methodology and the Global structured financial counterparties methodology.
Further information on key credit considerations, sensitivity analyzes that take into account the factors that may affect these credit ratings and how they could lead to an upgrade or downgrade, and ESG factors (where they are a key driver of change in credit rating or rating outlook) can be found in the comprehensive rating report mentioned above.
A description of all substantially significant sources that were used in preparing the credit rating and information on the methodology (s) (including significant models and sensitivity analyzes of key relevant rating assumptions, where applicable applicable) used to determine the credit rating are available in the information disclosure form (s) located here.
Information on the meaning of each rating category can be found here.
Additional information relating to this rating action is available in the information disclosure form (s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and information is available at: www.kbra.com.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the United States Securities and Exchange Commission as NRSRO. Kroll Bond Rating Agency Europe Limited is registered as CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as CRA with the UK Financial Conduct Authority under the temporary registration regime. In addition, KBRA is designated as a designated rating agency by the Ontario Securities Commission for issuers of asset-backed securities to file a simplified prospectus or a shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a credit rating provider.
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