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Moody's Investors Service Inc.

Moody's Upgrades Ratings on Atlas Static Senior Loan Fund I, Ltd Notes

Strategic Insights

— 2 min read

Moody's Investors Service has announced the upgrade of the ratings on the Class C-R Mezzanine Secured Deferrable Floating Rate Notes and Class D-R Mezzanine Secured Deferrable Floating Rate Notes issued by Atlas Static Senior Loan Fund I, Ltd. The upgrades come after a comprehensive review of the credit ratings for the transaction, which was conducted during a rating committee.

The upgrade of the ratings is primarily driven by the deleveraging of the senior notes and an increase in the transaction's over-collateralization (OC) ratios since November 2024. The Class A-R notes have been paid down by approximately 57% or $30 million since November 2024, resulting in OC ratios of 155.95% and 133.93% for the Class C-R and Class D-R notes, respectively.

However, the credit quality of the portfolio has deteriorated since November 2024, with the weighted average rating factor (WARF) increasing to 3357 compared to 3157 in November 2024. Despite this, the ratings on the Class C-R and Class D-R notes were upgraded due to the improved OC ratios.

Key Takeaways:

  • Moody's upgraded the ratings on the Class C-R Mezzanine Secured Deferrable Floating Rate Notes and Class D-R Mezzanine Secured Deferrable Floating Rate Notes issued by Atlas Static Senior Loan Fund I, Ltd.
  • The upgrades were driven by the deleveraging of the senior notes and an increase in the transaction's over-collateralization (OC) ratios since November 2024.
  • The Class A-R notes have been paid down by approximately 57% or $30 million since November 2024.
  • The OC ratios for the Class C-R and Class D-R notes are currently 155.95% and 133.93%, respectively, versus November 2024 levels of 140.14% and 125.58%, respectively.
  • The weighted average rating factor (WARF) has increased to 3357 compared to 3157 in November 2024.

Statistics:

  • $30 million: The amount by which the Class A-R notes have been paid down since November 2024.
  • 57%: The percentage decrease in the Class A-R notes since November 2024.
  • 155.95%: The current over-collateralization (OC) ratio for the Class C-R notes.
  • 133.93%: The current OC ratio for the Class D-R notes.
  • 140.14%: The OC ratio for the Class C-R notes in November 2024.
  • 125.58%: The OC ratio for the Class D-R notes in November 2024.
  • 3357: The weighted average rating factor (WARF) as of the current review.
  • 3157: The WARF in November 2024.

Sources:

  • "Moody's Ratings," Moody's Investors Service
  • "Moody's Global Approach to Rating Collateralized Loan Obligations," Moody's Investors Service, published in May 2024 (available at https://ratings.moodys.com/rmc-documents/420962)

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