KEY RATING DRIVERS
The affirmation is based on the stable performance of the underlying portfolio since the transaction's inception in
The loan portfolio par amount plus principal cash is approximately
The Stable Outlook reflects the expectation that the class A-1 notes, A-2 notes and A loan have sufficient levels of credit protection to withstand potential deterioration in the credit quality of the portfolio, based on the results of the Fitch sensitivity analysis described below.
The ratings of the notes may be sensitive to the following: asset defaults, portfolio migration, including assets being downgraded to 'CCC', portions of the portfolio being placed on Rating Watch Negative, overcollateralization (OC) or interest coverage (IC) test breaches, or breach of concentration limitations or portfolio quality covenants. Fitch conducted rating sensitivity analysis on the closing date of Sound Point III, incorporating increased levels of defaults and reduced levels of recovery rates, among other sensitivities.
Sound Point III is an arbitrage, cash flow collateralized loan obligation (CLO) managed by
The class A loan was issued at close and includes a conversion option to be converted into class A-2 notes. Once the option is exercised, the aggregate outstanding amount of the class A-2 notes will be increased by the principal amount of the class A loans and the class A loans shall no longer be outstanding. The class A-2 note balance continues to be
Initial Key Rating Drivers and Rating Sensitivity are further described in the New Issue Report published on
Fitch has affirmed the following rating:
Fitch does not rate the class B, C-1, C-2, D, E, or F notes or the subordinated notes.
Additional information is available at 'www.fitchratings.com'.
--'Global Structured Finance Rating Criteria' (
--'Global Rating Criteria for Corporate CDOs' (
--'Counterparty Criteria for Structured Finance and Covered Bonds' (
--'Sound Point CLO III, Ltd./Inc. New Issue Report' (
--'Sound Point CLO III, Ltd./Inc. - Appendix' (
Global Structured Finance Rating Criteria
Global Rating Criteria for Corporate CDOs
Counterparty Criteria for Structured Finance and Covered Bonds
Primary Surveillance Analyst
Source: Fitch Ratings
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