Energy-heavy Silvermine CLO takes ratings hit from S&P

By James Harvey

A 2013 CLO managed by Man GLG Silvermine has become the first to suffer a ratings hit due to the commodities downturn, after its junior mezzanine tranche was downgraded by Standard & Poor's late last month

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TAGS: Silvermine

View details on CLO-i: Ecp clo 2013-5

Comment by: Anonymous. Posted 1 year ago [2016-02-12 00:16:59]

So the Class E has a "cash flow implied rating" of CCC. Further, this bond is "under water" in the sense that liquidation of the assets would pay zero value to the Class E and several tranches above it. So why is the rating not CCC rather than B-? The S&P Rating Committee doesn't like big downgrades?