Creditreform Rating (CRA) has set the rating for the bearer bonds with the ISIN XS1667320854 ICG SDP III Notes at BBB-. The outlook has been set to stable.
The rating subject are the ICG SDP III Notes bearer bonds issued by Universal Securitization Solutions III S.A., Compartment Securio 3-1915-01. The issuer invests the proceeds indirectly in the form of equity in a portfolio of predominantly European corporate loans. Investments are made through the ICG Senior Debt Partners Fund III investment vehicle. The relevant manager is Intermediate Capital Group plc. The main reasons for confirming the rating to BBB- are the increased diversification of the portfolio, which is currently above our initial assumptions. The portfolio also had no defaults or credit events up to the rating date. A minor credit enhancement was built up through early note redemptions, which also had a positive effect on the rating.
At the same time, the expected effects from the global COVID-19 pandemic communicated by the manager as well as further worst-case scenarios were taken into account. According to the calculations of the CRA, sufficient cash flows result over the term, taking stressed scenarios into account, in order to be able to fulfill all obligations under the bearer bonds.