DBRS Morningstar Discontinues Ratings on Garrison Middle Market Funding II Primary LP and Garrison Middle Market Funding II Secondary LP

DBRS, Inc. (DBRS Morningstar) discontinued the ratings of AA (sf) on both the Class A-R Loans and Class A-T Loans (together, the Loans) issued by Garrison Middle Market Funding II Primary LP and Garrison Middle Market Funding II Secondary LP, acting through the General Partner, Garrison Middle Market Funding II CLO Ltd. up to the Total Class A-R Commitment of $125,000,000 and Total Class A-T Commitment of $75,000,000, respectively. The discontinuations reflect the repayment in full of the loans.

The Loans were issued pursuant to the Credit Agreement dated as of April 5, 2018, among Garrison Middle Market Funding II Primary LP, as Primary Borrower; Garrison Middle Market Funding II Secondary LP, as Secondary Borrower; Garrison Middle Market Funding II CLO Ltd., as General Partner; Natixis, New York Branch, as Administrative Agent; U.S. Bank National Association (rated AA (high) with a Stable trend by DBRS Morningstar), as Collateral Agent and Custodian; and the Lenders referred to therein.

The ratings on the Loans addressed the timely payment of interest (excluding the Excess Interest Amounts; 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 Loans were collateralized primarily by a portfolio of U.S. middle-market, senior-secured corporate loans and other corporate obligations. Garrison Middle Market Funding II Manager LLC acted as the Collateral Manager. The Collateral Manager was an indirect wholly owned subsidiary of Garrison Investment Group LP. DBRS Morningstar considers Garrison Investment Group LP to be an acceptable collateralized loan obligation manager.

To assess portfolio credit quality, DBRS Morningstar provided a credit estimate or an internal assessment for each non-financial corporate obligor in the portfolio not rated by DBRS Morningstar. 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.

DBRS Morningstar notes that the above press release was amended on January 7, 2020, to add a clarifying sentence regarding the endorsement of the notes to a 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 Morningstar had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

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

The last rating action on this transaction took place on April 11, 2018, when the ratings on the Loans were confirmed.

For further information on DBRS Morningstar 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: Quan Yoon, Assistant Vice President, US Structured Credit
Rating Committee Chair: Jerry van Koolbergen, Managing Director, Head of US Structured Credit
Initial Rating Date: April 6, 2018

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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