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Moody's Investors Service Inc.

Moody's Upgrades Rating on Bayfront Infrastructure Capital IV Pte. Ltd. Class B Notes

Strategic Insights

— 1 min read

The rating agency Moody's Investors Service has upgraded the rating on the Class B Notes issued by Bayfront Infrastructure Capital IV Pte. Ltd., a project finance collateralized loan obligation (CLO) cash flow securitization. The upgrade is primarily driven by an increase in the credit enhancement available to the notes and the stable credit quality of the portfolio of project finance and infrastructure loans and bonds. As of April 2025, the CLO was backed by a US$344 million portfolio of 37 bank-syndicated senior project finance and infrastructure loans and bonds to 32 projects across various regions.

Key Takeaways:

  • The rating upgrade on the Class B Notes is mainly attributed to an increase in the credit enhancement available to the notes, which has increased to 20.3% from 17.1% at closing.
  • The cash currently held in the CLO will be distributed in October 2025, which will benefit the Class B Notes.
  • The pool credit quality has remained stable, with a current weighted average rating factor (WARF) of 1,376 after applying credit estimate notching adjustments.
  • The CLO manager's investment decisions will also affect the performance of the rated securities, which is subject to a high level of macroeconomic uncertainty.
  • The transaction is backed by a US$344 million portfolio of 37 bank-syndicated senior project finance and infrastructure loans and bonds to 32 projects across Asia Pacific, the Middle East, Africa, and the Americas.

Statistics:

  • US$54.5 million: The outstanding amount of Class B Senior Secured Floating Rate Notes due 2044.
  • 20.3%: The effective subordination available to the Class B Notes as of April 2025.
  • 17.1%: The effective subordination at closing.
  • 37: The number of bank-syndicated senior project finance and infrastructure loans and bonds in the CLO portfolio.
  • 32: The number of projects across various regions that the loans and bonds are secured against.
  • US$344 million: The current par value of the underlying loan portfolio in the CLO.
  • 5.4 years: The weighted average life of the loans in the CLO portfolio.
  • 73%: The weighted average recovery rate upon default of the loan portfolio.

Sources:

  • "Moody's Ratings" news release (author and publication date not specified)
  • "Project Finance and Infrastructure Asset CLOs" methodology, published in July 2024 and available at ratings.moodys.com/rmc-documents/425583.

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