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Related Issuers
ADAGIO III CLO P.L.C.
Adirondack Park CLO Ltd.
Allegro CLO III, Ltd.
Alpstar CLO 1 Plc
Apidos CLO IX
Apidos CLO X
Apidos CLO XXII
Apidos CLO XXIII (Secured Note), Ltd.
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Black Diamond CLO 2005-2
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Carlyle Global Market Strategies CLO 2012-1, Ltd.
Carlyle Global Market Strategies CLO 2015-2 (Combination Note), Ltd.
Carlyle Global Market Strategies CLO 2015-4, Ltd.
Carlyle Global Market Strategies CLO 2016-1, Ltd.
CELF Loan Partners B.V.
CELF Loan Partners III plc.
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CIFC Funding 2015-IV, Ltd.
CIFC Funding 2015-V, Ltd.
CLO 2014-9 Combo Note Ltd.
CLO 2015-11 Combo Note Ltd.
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Eurocredit CDO V PLC
EUROCREDIT CDO VII PLC
Galaxy XIX CLO, Ltd.
Galaxy XX CLO (Combination Note), Ltd.
Gateway III - Euro CLO S.A.
Gateway IV - Euro CLO S.A.
Gleneagles CLO Ltd
Global Leveraged Capital Credit Opportunity Fund I
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Green Park CDO B.V.
GSC European CDO II S.A.
GSC European CDO I-R
ICG US CLO 2015-1, Ltd.
Jamestown CLO VIII (Secured Note) Ltd.
Jubilee CDO I-R B.V.
Jubilee CDO IV B.V.
Jubilee CDO V B.V.
Jubilee CDO VI B.V.
KHCN LLC
Kingsland V, Ltd.
LCM XIX Combination Ltd.
Leveraged Finance Europe Capital III B.V.
Limerock CLO I
Lombard Street CLO I P.L.C.
Madison Park Funding III, Ltd.
Madison Park Funding XL, Ltd.
Madison Park Funding XX, Ltd.
Magnetite XVI, Limited
Maranon Loan Funding 2015-1 (Secured Note) Trust
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North Westerly CLO III B.V.
OAK HILL EUROPEAN CREDIT PARTNERS I P.L.C.
Oaktree CLO 2015-1 Ltd.
Octagon Investment Partners 25 (Secured Note), Ltd.
Octagon Loan Funding, Ltd.
OHA Credit Partners IX, Ltd.
PENTA CLO 1 S.A.
Phoenix CLO II, Ltd.
Recette CLO, Ltd.
Regatta IV Funding Ltd.
RMF Euro CDO V plc
Rockwall CDO II Ltd.
Sound Point CLO VI, Ltd.
Symphony CLO XI Limited Partnership
Symphony CLO XVII, Ltd.
THL Credit Wind River 2015-1 CLO (Secured Note), Ltd.
Tralee CDO I Ltd.
Treman Park CLO, Ltd.
Voya CLO 2013-1, Ltd.
Voya CLO 2014-3, Ltd.
Voya CLO 2015-2, Ltd.
Voya CLO 2015-3 (Secured Note), Ltd.
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Wood Street CLO II B.V.
Wood Street CLO IV B.V.
Announcement:

Moody's publishes its updated methodology for rating securities backed by CLO secured debt and equity tranches

07 Oct 2016

New York, October 07, 2016 -- Moody's Investors Service has published an updated methodology for rating securities backed by both secured debt and equity tranches of collateralized loan obligation (CLOs). The updated methodology, which replaces the one published on 14 December 2015, aims to account for the risks associated with a potential refinancing of the CLO secured debt tranches in such securities. The update follows the review of comments in response to the Requests for Comment (RFCs) "Moody's Proposes Revised Approach to Rating Instruments Backed by CLO/CDO Secured Debt Tranches and Equity," published on 29 July 2016, and "Moody's Proposes Revised Approach to the Rating of Combination Securities," published on 21 April 2016.

The updated methodology adds a CLO refinancing scenario to Moody's analysis of securities backed by both CLO secured debt and equity tranches, when the security's documentation permits refinancing. Adding the refinancing scenario analysis will capture the combined effects of loss of future coupon payments from the refinanced CLO secured debt tranches, as well as the impact on the instrument's weighted average life or duration. The methodology update appears in the appendix "Approach to Rating Instruments that Are Backed by CLO Secured Debt Tranches and Equity, and CLO Instruments with non-Standard Promises" found in "Moody's Global Approach to Rating Collateralized Loan Obligations."

Changes in Moody's Ratings

As a result of the methodology update, Moody's will place on review for downgrade the ratings on a number of combination securities backed by CLO secured debt and equity tranches, and will issue a separate announcement providing details on these rating actions by transaction.

Moody's will no longer assign new ratings to combination securities backed by both CLO secured debt and equity tranches that have a rated balance that differs from the entire contractual promise of these securities. Moody's will however monitor all ratings currently outstanding for such securities, which ratings continue to be based upon the rated balance, and not the contractual promise. For a list of these outstanding ratings, see the CLO tab of the spreadsheet at http://www.moodys.com/viewresearchdoc.aspx?docid=PBS_SF440601

Results of Consultation

As noted in Moody's report "Request for Comment / Results of Consultation: Moody's Proposes Revised Approach to the Rating of Combination Securities" (ROC), Moody's received five comments in response to this RFC, of which two respondents requested confidentiality. The comments are summarized in the ROC, available at: http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1038016

As noted in Moody's report "Request for Comment / Results of Consultation: Moody's Proposes Revised Approach to Rating Instruments Backed by CLO/CDO Secured Debt and Equity Tranches" (ROC), Moody's received one comment, whose respondent requested confidentiality, in response to the RFC. The comment is summarized in the ROC, available at: http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1041724

This press release is not intended to provide a summary of the proposed methodology. For a full explanation of the updated methodology, please consult "Moody's Global Approach to Rating Collateralized Loan Obligations" which is available on www.moodys.com and accessible at:

http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1038011

NOTE TO JOURNALISTS ONLY: For more information, please call one of our global press information hotlines: New York +1-212-553-0376, London +44-20-7772-5456, Tokyo +813-5408-4110, Hong Kong +852-3758-1350, Sydney +61-2-9270-8141, Mexico City 001-888-779-5833, São Paulo 0800-891-2518, or Buenos Aires 0800-666-3506. You can also email us at mediarelations@moodys.com or visit our web site at www.moodys.com.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Algis Remeza
Associate Managing Director
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Jian Hu
MD - Structured Finance
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
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