Fitch stabilizes CLO ratings on new Covid scenario

By Paola Aurisicchio
25 Jan 2021

Fitch Ratings is poised to revise most of its CLO tranches outlooks from negative to stable, following a revision of its CLO coronavirus stress scenario, which is considered no longer representative of the near-term risks for CLOs.

The credit profile of triple-A tranches CLOs emerged intact from the credit storm at the peak of the pandemic and are currently on stable outlook together with the vast majority of other investment-grade tranches, according to Fitch Ratings. 

On the other side, about two thirds of non-investment grade tranches ...

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