ARC was requested to provide a principal only rating on a pre-existing transaction which has been undergoing some amendments in recent months. Under the amendments, BNP Paribas (the ‘Facility B Initial Lender’) and a second multinational investment bank (the ‘Facility A Initial Lender’) will make certain funds available to the Borrower from time to time, each by way of multicurrency revolving loan facilities (together, the ‘Facilities), for the purpose of funding the purchase or origination by the Borrower of Collateral Obligations, which will predominantly be senior secured broadly syndicated loans. The Borrower is an Irish Designated Activity Company (DAC). The collateral manager is one of the world’s leading alternative asset managers, whose active management approach has allowed for consistently low loan principal loss rates through the cycle. ARC views the experience of the collateral manager as a key mitigant for this transaction