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Moody's Investors Service Inc.

Moody's Upgrades Ratings on Long Point Park CLO, Ltd. Notes

Strategic Insights

— 2 min read

Moody's Investors Service has announced the upgrade of several notes issued by Long Point Park CLO, Ltd., a collateralized loan obligation backed by a portfolio of broadly syndicated senior secured corporate loans. The upgrading of the ratings on the Class B and C notes is primarily due to the deleveraging of the senior notes following the amortization of the underlying portfolio since the last rating action in November 2024. The affirmations on the ratings on the Class A-1a, A-1b, A-2, D-1, and D-2 notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features, and its actual over-collateralization ratios.

Key Takeaways:

  • The rating upgrades on the Class B and C notes are due to the deleveraging of the senior notes following the amortization of the underlying portfolio since the last rating action in November 2024.
  • The affirmations on the ratings on the Class A-1a, A-1b, A-2, D-1, and D-2 notes are based on the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features, and its actual over-collateralization ratios.
  • The senior notes have paid down by approximately USD78.7 million (21.4%) since the last rating action in November 2024 and USD351.4 million (95.6%) since closing, resulting in increased over-collateralization (OC) across the capital structure.
  • The Class A, Class B, Class C, and Class D OC ratios are reported at 226.5%, 155.8%, 122.9%, and 108.8%, respectively, compared to October 2024 levels of 163.3%, 133.3%, 115.1%, and 106.2%, respectively.
  • The collateral manager's investment decisions and management of the transaction will affect the notes' performance, and additional uncertainty arises from portfolio amortization and recovery of defaulted assets.

Statistics:

  • The senior notes have paid down by approximately USD78.7 million (21.4%) since the last rating action in November 2024.
  • The Class A, Class B, Class C, and Class D OC ratios are reported at 226.5%, 155.8%, 122.9%, and 108.8%, respectively.
  • The trustee report dated May 2025 indicates that the Class A, Class B, Class C, and Class D OC ratios are higher than the October 2024 levels.
  • The collateral manager has paid down the senior notes by USD351.4 million (95.6%) since closing.

Sources:

  • Moody's Ratings (Moody's)
  • Long Point Park CLO, Ltd.
  • Blackstone CLO Management LLC
  • "Moody's Global Approach to Rating Collateralized Loan Obligations" (May 2024)
  • "Structured Finance Counterparty Risks" (May 2025)

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