Fitch stabilizes CLO ratings on new Covid scenario

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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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