DBRS Assigns Ratings to the Class A-R Loans and Class A-T Loans Issued by ABPCI II Direct Lending Funding I LP

DBRS, Inc. (DBRS) assigned ratings of AA (sf) to both the Class A-R Loans and the Class A-T Loans (together, the Class A Loans) issued by ABPCI II Direct Lending Funding I LP (ABPCI II DLF I LP) up to the Total Class A-R Commitment of $50,000,000 and the Total Class A-T Commitment of $100,000,000.

The Class A Loans were issued pursuant to the Credit Agreement dated as of March 22, 2019, among ABPCI II DLF I LP as Borrower; Natixis, New York Branch as Administrative Agent; U.S. Bank National Association (rated AA (high) with a Stable trend by DBRS) as Collateral Agent, Collateral Administrator and Custodian; and the Lenders thereto.

The Class A Loans will be collateralized primarily by a portfolio of U.S. middle-market corporate loans and other corporate obligations. ABPCI II DLF I LP is managed by AB Private Credit Investors LLC (ABPCI), an affiliate of AllianceBernstein L.P. DBRS considers ABPCI to be an acceptable collateralized loan obligation manager.

The ratings on the Class A Loans address the timely payment of interest up to the Interest Rate Cap (as defined in the Credit Agreement referred to above) and the ultimate payment of principal on or before the Stated Maturity (as defined in the Credit Agreement referred to above).

The ratings reflect the following:

(1) The Credit Agreement dated March 22, 2019.
(2) The integrity of the transaction structure.
(3) DBRS’s assessment of the portfolio quality.
(4) Adequate credit enhancement to withstand projected collateral loss rates under various cash flow stress scenarios.
(5) DBRS’s assessment of the origination and collateralized loan obligation management capabilities of ABPCI.

To assess portfolio credit quality, DBRS provides a credit estimate or internal assessment for each non-financial corporate obligor in the portfolio not rated by DBRS. Credit estimates are not ratings; rather, they represent a model-driven default probability for each obligor, which is used to assign ratings to a transaction.

DBRS notes that the above press release was amended on August 7, 2019, to remove an unnecessary disclosure. The amendment was minor and would not impact the understanding of the reader.

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

The principal methodology is Rating CLOs and CDOs of Large Corporate Credit, which can be found on dbrs.com under Methodologies & Criteria.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

Please see the related appendix for additional information regarding the sensitivity of assumptions used in the rating process.

This rating is endorsed by DBRS Ratings Limited for use in the European Union. The following additional regulatory disclosures apply to endorsed ratings:

This rating concerns a newly issued financial instrument. This is the first DBRS rating on this financial instrument.

For further information on DBRS historical default rates published by the European Securities and Markets Authority (“ESMA”) in a central repository, see http://cerep.esma.europa.eu/cerep-web/statistics/defaults.xhtml.

Lead Analyst: Joseph Priolo, Senior Vice President, U.S. Structured Credit
Rating Committee Chair: Jerry van Koolbergen, Managing Director, U.S. Structured Credit
Initial Rating Date: March 22, 2019

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

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