DBRS Confirms Ratings on the Loans Issued by Fifth Street Senior Loan Fund II and Removes Under Review with Positive Implications

DBRS, Inc. (DBRS) has today confirmed the following ratings on the Class A Loans, Class B Loans and Class C Loans (collectively, the Loans) contemplated to be issued under the Fifth Street Senior Loan Fund II, LLC revolving credit facility, up to the Total Class A Commitment of $200,000,000, Total Class B Commitment of $42,100,000 and Total Class C Commitment of $12,230,000, as per the Credit Agreement, dated as of August 19, 2014.

The Loans will be collateralized primarily by a portfolio of U.S. middle market corporate loans and other corporate obligations. Fifth Street Senior Loan Fund II, LLC is managed by Fifth Street Management LLC.

The DBRS rating on the Class A Loans addresses Fifth Street Senior Loan Fund II, LLC’s ability to make timely payments of interest and ultimate payment of principal on or before the Final Maturity Date (as defined in the Credit Agreement referred to above). The DBRS ratings on the Class B Loans and Class C Loans address Fifth Street Senior Loan Fund II, LLC’s ability to make ultimate payments of interest and ultimate payment of principal on or before the Final Maturity Date (as defined in the Credit Agreement referred to above).

DBRS has also removed Under Review with Positive Implications on the Loans. The rating action reflects the conclusion of the impact review of the updates to the Rating CLOs and CDOs of Large Corporate Credit methodology. Updates to the methodology include (a) additional recovery rates for non-investment grade rating categories and (b) minor updates to country tiers.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating CLOs and CDOs of Large Corporate Credit (April 2015), which can be found on our website under Methodologies.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.