KBRA assigns preliminary ratings to three classes of notes issued by ABPCI Direct Lending Fund ABS IV LP (“ABPCI IV”), a securitization backed by a portfolio of recurring revenue loans, middle market loans, and hybrid asset-based loans.

ABPCI IV is an approximate $300.0 million securitization managed by AB Private Credit Investors LLC (“ABPCI” or the “Collateral Manager”). The securitization consists of $192.0 million Class A notes, $30.0 million Class B notes, $18.0 million Class C notes, and $60.0 million of Subordinated Notes, which are expected to receive payments from the portfolio, consisting primarily of recurring revenue loans ("RRLs") and middle market loans ("MMLs"). The reinvestment period is approximately two years from the closing date. The ratings reflect initial credit enhancement levels, excess spread, and structural features.

The rated notes benefit from internal credit enhancement through subordination, borrowing base, and excess spread. KBRA determined a credit assessment for each asset in the initial portfolio. At closing, the portfolio is expected to have a K-WARF of 3579, which equates to a weighted average assessment between B- and CCC+. The overall credit quality of RRLs, which account for 74.4% of the portfolio, is generally lower than that of traditional MMLs.

ABPCI is an investment adviser and a subsidiary of Alliance Bernstein L.P., established in 2014. ABPCI’s direct lending platform has over $25 billion in gross commitments across over 550 transactions and $16 billion of capital available for investment. ABPCI currently manages approximately $5.6 billion in syndicated CLOs. As of December 2023, ABPCI has invested approximately $14.3 billion within the technology and software industry vertical.

KBRA’s preliminary ratings on the Class A-1, A-2, and B Notes considers timely payment of interest and ultimate payment of principal by the applicable stated maturity date. KBRA’s preliminary rating on the Class C Notes considers ultimate payment of interest and principal by the applicable stated maturity date.

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Methodologies

• Structured Credit: Structured Credit Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1003593

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