DBRS Assigns Provisional Rating to Class A Notes Issued by ABPCI Direct Lending Fund CLO I Ltd.

DBRS, Inc. (DBRS) has today assigned the following provisional rating to the Class A Senior Secured Floating Rate Notes (the Class A Notes) issued by ABPCI Direct Lending Fund CLO I Ltd. pursuant to the Indenture dated as of December [22], 2016, among ABPCI Direct Lending Fund CLO I Ltd., as Issuer; ABPCI Direct Lending Fund CLO I First Static Subsidiary LLC, as First Static Subsidiary; ABPCI Direct Lending Fund CLO I Second Static Subsidiary LLC, as Second Static Subsidiary; ABPCI Direct Lending Fund CLO I LLC, as Co-Issuer; and U.S. Bank National Association, as Trustee:

-- Class A Notes at A (low) (sf)

The provisional rating on the Class A Notes addresses the timely payment of interest and the ultimate payment of principal on or before the Stated Maturity (as defined in the Indenture referred to above).

The Notes issued by ABPCI Direct Lending Fund CLO I Ltd. will be collateralized primarily by a portfolio of U.S. middle-market corporate loans. ABPCI Direct Lending Fund CLO I Ltd. will be managed by AB Private Credit Investors LLC.

The rating reflects the following:

(1) The draft Indenture dated December [22], 2016.

(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, servicing and collateralized loan obligation management capabilities of AB Private Credit Investors LLC as Collateral Manager.

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 that is used in assigning a rating to the facility. Assessing the priority of payments, upon an Enforcement Event (as defined in the Indenture), Administrative Expenses will be uncapped in the Enforcement Event Priority of Payments senior to the Class A Notes, which could impact DBRS’s rating to the Class A Notes at that time.

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

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

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

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

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

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