DBRS Morningstar Confirms AA (sf) Ratings on Class A-R and Class A-T Loan of Cerberus Redwood Levered B LLC

DBRS, Inc. (DBRS Morningstar) confirmed the ratings of AA (sf) on the Class A-R Loans and the Class A-T Loans (together, the Loans) issued by Cerberus Redwood Levered B LLC (Cerberus Redwood) up to the total commitment permitted under the Loans of $225,000,000.

The Loans were issued pursuant to the Credit Agreement dated as of June 12, 2017 (as amended by Amendment No. 1 to the Credit Agreement dated November 9, 2017; Amendment No. 2 to the Credit Agreement dated as of December 14, 2018; and Amendment No. 3 to the Credit Agreement dated as of April 25, 2019), among Cerberus Redwood B LLC as Borrower; Cerberus Redwood Levered Loan Opportunities Fund B, L.P. as Servicer; Natixis, New York Branch as Administrative Agent; and U.S. Bank National Association as Collateral Agent and Custodian.

The confirmation of the ratings on the Loans reflects the execution of Amendment No. 4 to the Credit Agreement dated as of January 16, 2019.

DBRS Morningstar considers Cerberus Redwood Levered Loan Opportunities Fund B, L.P to be an acceptable collateralized loan obligation manager.

The rating confirmations by DBRS Morningstar do not signify the approval of the amendment by DBRS Morningstar or an opinion by DBRS Morningstar as to whether the amendment is beneficial or detrimental to the holders of the securities.

The ratings address Cerberus Redwood’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 Loans will be collateralized primarily by a portfolio of U.S. middle-market corporate loans and other corporate obligations. Cerberus Redwood is serviced by Cerberus Redwood Levered Loan Opportunities Fund B, L.P., an affiliate of Cerberus Capital Management II, L.P.

To assess portfolio credit quality, DBRS Morningstar provides a credit estimate or 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 Loans.

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 25, 2019, when DBRS Morningstar confirmed the ratings on the Loans.

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, U.S. Structured Credit
Rating Committee Chair: Jerry van Koolbergen, Managing Director, Head of U.S. Structured Credit
Initial Rating Date: June 16, 2017

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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