Golub Capital Partners CLO 62(B)-R refinancing notes receive Fitch ratings

Traders Union
All News
Business & Wealth
Companies
Golub Partners CLO refinancing

Highlights

Fitch assigned AAAsf rating to A-2-R2 notes and AAsf to B-R2 notes for Golub Capital Partners CLO 62(B)-R's $400 million refinancing closing October 30, 2026.
Indicative portfolio comprises 99.27% first-lien senior secured loans with a weighted average rating factor of 25.58 and a 74.38% weighted average recovery rate.
Fitch's cash flow analysis supports ratings, noting portfolio industry, obligor, and geographic diversification are consistent with other recent CLO transactions.

Refinancing structure and rating actions

As reported by Fitch Ratings, the agency has assigned ratings and Rating Outlooks to the refinancing notes issued by Golub Capital Partners CLO 62(B)-R, Ltd. The refinancing closes on Oct. 30, 2026, with net proceeds from the secured and subordinated notes used to finance a portfolio of approximately $400 million.

Fitch lists new ratings for the A-1-R2 notes at NRsf, the A-2-R2 notes at AAAsf, the B-R2 notes at AAsf, the C-1-R2 and C-2-R2 notes at Asf, and the D-1-R2 notes at BBB-sf. The agency also marks the prior B-R, C-R and D-1-R notes as paid in full.

The issuer is an arbitrage cash flow collateralized loan obligation managed by OPAL BSL LLC. Fitch says this is the transaction's second refinancing after an earlier refinancing in September 2024.

Portfolio quality and market implications

Fitch says the indicative portfolio has average credit quality of 'B'/'B-', which it views as broadly in line with recent CLO transactions. The weighted average rating factor is 25.58, while the portfolio is 99.27% first-lien senior secured loans and has a weighted average recovery rate of 74.38%.

The agency says the largest three industries may account for up to 57% of the portfolio in aggregate, while the top five obligors may represent up to 12.5% at the initial example matrix point. Fitch adds that the resulting industry, obligor and geographic diversity is consistent with other recent CLOs.

Under its cash flow analysis, Fitch uses a proprietary model to test the transaction's principal and interest waterfalls and concludes that the rated notes can withstand default and recovery assumptions consistent with their assigned ratings. The agency also says it reduces the weighted average life used in its stress portfolio by up to 12 months for WAL covenants above six years, reflecting structural and reinvestment conditions that it believes reduce the effective risk horizon during stress periods.

Our earlier coverage of Fitch’s rating on Hainan Rubber’s proposed subordinated perpetual sustainable securities explained how the notes were structured through its majority-owned unit Halcyon Agri and why the rating sat below the issuer level due to subordination and coupon-deferral features. We also outlined Fitch’s view of the group’s leverage and liquidity profile, including the role of state-related support in maintaining funding access despite elevated debt metrics.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.