LONDON–(BUSINESS WIRE)–#creditratingagency–KBRA UK (KBRA) assigns preliminary ratings to six classes of notes issued by Tikehau CLO XI DAC, a cash flow collateralised loan obligation (CLO) backed primarily by a diversified portfolio of Euro-denominated corporate loans.
Tikehau CLO XI DAC is a €407.4 million European cash flow CLO managed by Tikehau Capital Europe Limited (“Tikehau” or the “collateral manager”), a wholly owned subsidiary of Tikehau Capital. The CLO originally closed in September 2023. This transaction will reset the terms of the CLO, including the stated maturity, non-call period, reinvestment period, note interest rates and notional balances. The CLO will have a 4.5-year reinvestment period and a 12.5-year legal final. The ratings reflect initial credit enhancement levels, coverage tests including par value and interest coverage tests, excess spread, and a reinvestment overcollateralisation test. This is the first Tikehau CLO to be rated by KBRA.
The collateral in Tikehau CLO XI DAC will mainly consist of broadly syndicated leveraged loans and bonds issued by corporate obligors diversified across sectors. The target portfolio par amount is €400.0 million with exposures to 202 obligors. The obligors in the portfolio have a K-WARF of 2562, which represents a weighted average portfolio assessment of approximately B.
Tikehau is a European alternative asset manager with €50.6 billion in assets under management (AUM) as of 31 March 2025. The company operates units across 4 areas of expertise: Credit, Real Assets, Private Equity and Capital Markets Strategies. Tikehau’s European CLO business was established in 2014 and has since issued 13 CLO 2.0 vintage transactions and currently has €5.1 billion in AUM.
The ratings on the Class A-R and B-R Notes consider the timely payment of interest and ultimate payment of principal by the applicable stated maturity date, while the ratings on the Class C-R, D-R, E-R and F-R Notes consider the ultimate payment of interest and principal by the applicable stated maturity date.
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Methodologies
- Structured Credit: Structured Credit Global Rating Methodology
- Structured Finance: Global Structured Finance Counterparty Methodology
- ESG Global Rating Methodology
Disclosures
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.
Information on the meaning of each rating category can be located here.
This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.
Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.
About KBRA UK
Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency UK is located at 1 Connaught Place, 2nd Floor London, England.
Doc ID: 1009817
Contacts
Analytical Contacts
Gabriele Gramazio, Senior Director (Lead Analyst)
+44 20 8148 1001
gabriele.gramazio@kbra.com
HyunKyeong Kim, Associate
+1 646-731-2459
hyunkyeong.kim@kbra.com
Sean Malone, Senior Managing Director, Co-Head of Global Structured Credit
+1 646-731-2436
sean.malone@kbra.com
Eric Hudson, Senior Managing Director, Co-Head of Global Structured Credit (Rating Committee Chair)
+1 646-731-3320
eric.hudson@kbra.com
Business Development Contacts
Miten Amin, Managing Director
+44 20 8148 1002
miten.amin@kbra.com
Mauricio Noé, Co-Head of Europe
+44 20 8148 1010
mauricio.noe@kbra.com
