New York City–(COMPANY WIRE)– Fitch Ratings assigns the following ratings to Mountain View CLO IX
–$326,400,000 class A-1A keeps in mind AAAsf; Outlook Steady;
–$30,000,000 class A-1B keeps in mind AAAsf; Outlook Steady.
Fitch does not rate the class A-2, B, C, D or the subordinated notes.
Mountain View CLO IX Ltd. (issuer) and Mountain View CLO IX LLC
(co-issuer), together, Mountain View IX, make up an arbitrage cash circulationcapital
collateralized loan obligation (CLO) that will be handled by Seix
Investment Advisors LLC (Seix). Net proceeds will certainly be used to buy
possessions to reach a target profile of approximately $550 million of
leveraged loans. The CLO will certainly have a roughly four-year
reinvestment period and two-year non-call duration.
SECRET SCORE DRIVERS
Sufficient Credit Improvement: Credit enhancement (CE) of 35.2 % for
class A-1A and A-1B (together, class A-1) notes, in addition to extra
spread, is sufficientsuffices to secure against profile default and recovery
rate forecasts in the AAAsf stress situation. The level of CE for
class A-1 notes is below the average for recent CLO issuances. Cash flowCapital
modeling suggests performance in line with other Fitch-rated CLO notes.
B+/ B Property Quality: The average credit quality of the a measure
profile is B+/ B, which is comparable to current CLOs. Issuers rated
in the B score category denote fairly weak credit quality;
nevertheless, in Fitchs viewpoint, class A-1 notes are unlikely to be affected
by the foreseeable level of defaults. Class A-1 notes are robust against
default rates of as much as 62.7 %.
Strong Recovery Expectations: The a measure portfolio includes 98.7 %.
senior protected loans. Roughly 96.6 % of the indicative portfolio.
has strong recuperation potential customers or a Fitch-assigned Recovery Score of.
RR2 or higher, and the base case recuperation presumption is 79.6 %. In.
determining the scores for the class A-1 notes, Fitch stressed the.
indicative profile by presuming a greater portfolio concentration of.
properties with lower recovery potential customers and additional lowered recuperation.
assumptions for greater rating tensions, resulting in a 37.3 % recuperation.
rate presumption in Fitchs AAAsf scenario.
Fitch assessed the structures level of sensitivity to the prospective irregularity.
of crucial design assumptions, consisting of declines in recovery rates and.
increases in default rates or connection. Fitch expects the class A-1.
notes to remain investment grade even under the most severe sensitivity.
scenarios. Results under these level of sensitivity situations ranged between.
AA-sf and AAAsf for the class A-1 notes.
Key Rating Drivers and Rating Sensitivities are further described in the.
accompanying brand-new concern report, which is available to financiers on.
Fitchs website at www.fitchratings.com.
DUE DILIGENCE USAGE.
No 3rd party3rd party due diligence was provided or evaluated in relation to.
this score action.
The publication of a RWamp; Es appendix is not needed for this transaction.
Extra information is available at www.fitchratings.com.
Sources of Information:.
The sources of details made use of to assess these scores were offered by.
the arranger, Citigroup Global Markets Inc., and the general public domain.
Mountain View CLO IX Ltd./ LLC.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14.
Criteria for Rate of interest Stresses in Structured Financing Transactions.
and Covered Bonds (club. 19 Dec 2014).
Global Score Criteria for Corporate CDOs (bar. 25 Jul 2014).
International Structured Financing Rating Criteria (bar. 31 Mar 2015).
Dodd-Frank Rating Info Disclosure Kind.
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