KBRA Assigns Ratings to NSDL RN Feeder (Canada) LP
KBRA assigns an A rating to the Class A Notes, a BBB rating to the Class B Notes, and a BB rating to the Class C Notes (together, the Notes) issued by NSDL RN Feeder (Canada) LP (the Issuer or the Feeder). This published rating report summarizes KBRA's analysis of the Notes and KBRA’s ratings address the Issuer’s ability to fulfill its obligations on the ultimate interest payment and ultimate repayment of the Notes’ principal by their legal final maturity.
Key Credit Considerations
Asset Coverage: The Class A Notes, Class B Notes, and Class C Notes have advance rates and maximum LTVs of 50.0%, 75.0%, and 87.5%, respectively.
Master Fund Asset Quality: The Master Fund’s assets are expected to predominantly comprise senior secured direct lending investments, including first lien and unitranche loans, to middle-market companies with annual EBITDA between $20 million to $80 million and an expected weighted average annual EBITDA of $75 million. KBRA has assumed an asset quality of ‘ccc+’ based on information provided by Northleaf Capital Partners (Canada) Ltd. (Northleaf), which is expected to be representative of the loans eligible for the Master Fund.
