Fitch Ratings affirms the following notes issued by Ares
Enhanced Loan Investment Strategy, Ltd and co-issuer Ares Enhanced
Loan Investment Strategy LLC. (Ares ELIS). These affirmations are the
results of Fitch's review process and are effective immediately:
-- $65,000,000 class A-1a notes at 'AAA';
-- $347,500,000 class A-1b notes at 'AAA';
-- $65,000,000 class A2 notes at 'AAA';
-- $32,500,000 class B notes at 'A+'.
Ares ELIS is a collateralized loan obligation (CLO) that closed Nov. 8, 2004 and is managed by Ares Enhanced Loan Management, L.P. (Ares ELM). Ares ELIS has a revolving portfolio composed of high yield term loans, high yield bonds and delayed draw loans. Ares ELIS will exit its reinvestment period in November 2010. The class A-1 notes are delayed draw notes.
These affirmations are the result of stable collateral pools. The weighted average rating factor (WARF) has improved slightly at 22.67 ('B+') as of the most recent trustee report dated July, 10 2006 from 22.86 ('B+') as of the effective date, Oct. 11, 2005. The class A and B overcollateralization (OC) ratios have remained stable and although the class A and B interest coverage (IC) ratios have decreased they are still in compliance with their covenants. As of the most recent trustee report available, there were no defaulted assets. Since close the deal has had one defaulted asset. Assets rated 'CCC+' or lower represent approximately 4.0%, compared to 3.6% as of the effective date.
The ratings on the class A-1a, class A-1b, and class A2 notes address the timely payment of interest and ultimate payment of principal as outlined in the governing documents. The ratings on the class B notes address the ultimate payment of interest and principal as outlined in the governing documents.
Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings website at www.fitchratings.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated Sept. 13, 2004 and also available on Fitch's web site at www.fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
-- $65,000,000 class A-1a notes at 'AAA';
-- $347,500,000 class A-1b notes at 'AAA';
-- $65,000,000 class A2 notes at 'AAA';
-- $32,500,000 class B notes at 'A+'.
Ares ELIS is a collateralized loan obligation (CLO) that closed Nov. 8, 2004 and is managed by Ares Enhanced Loan Management, L.P. (Ares ELM). Ares ELIS has a revolving portfolio composed of high yield term loans, high yield bonds and delayed draw loans. Ares ELIS will exit its reinvestment period in November 2010. The class A-1 notes are delayed draw notes.
These affirmations are the result of stable collateral pools. The weighted average rating factor (WARF) has improved slightly at 22.67 ('B+') as of the most recent trustee report dated July, 10 2006 from 22.86 ('B+') as of the effective date, Oct. 11, 2005. The class A and B overcollateralization (OC) ratios have remained stable and although the class A and B interest coverage (IC) ratios have decreased they are still in compliance with their covenants. As of the most recent trustee report available, there were no defaulted assets. Since close the deal has had one defaulted asset. Assets rated 'CCC+' or lower represent approximately 4.0%, compared to 3.6% as of the effective date.
The ratings on the class A-1a, class A-1b, and class A2 notes address the timely payment of interest and ultimate payment of principal as outlined in the governing documents. The ratings on the class B notes address the ultimate payment of interest and principal as outlined in the governing documents.
Fitch will continue to monitor and review this transaction for future rating adjustments. Additional deal information and historical data are available on the Fitch Ratings website at www.fitchratings.com. For more information on the Fitch VECTOR Model, see 'Global Rating Criteria for Collateralized Debt Obligations,' dated Sept. 13, 2004 and also available on Fitch's web site at www.fitchratings.com.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.