Standard & Poor's Ratings Services said March 30 that itassigned its BB- issuer credit rating to CIFC LLC.
The ratings outlook is stable.
"The rating on CIFC LLC reflects its solid marketposition and long track record in the collateralized loan obligation market andgood investment performance, as well as its considerable leverage between 4.0xand 5.0x," said S&P analyst Sebnem Caglayan.
S&P said it expects CIFC to start issuing riskretention-compliant CLOs in 2016 as rules take effect in December that requireCLO managers to hold 5% of risk either through a vertical strip or the equitytranche, directly or through a consolidated affiliate.
The stable outlook on CIFC reflects S&P's view that thecompany will maintain an adjusted EBITDA margin above 35%, debt leverage of4.0x to 5.0x and interest coverage of about 4.0x to 4.5x over the next 18 to 24months, among other things,
Additionally, S&P affirmed and withdrew its BB- issuercredit rating on CIFC Corp.at the issuer's request.
S&P Ratings and Global Market Intelligence are owned byMcGraw Hill Financial Inc.