TEXT-S&P rates WhiteHorse VI Ltd./WhiteHorse notes
OVERVIEW -- WhiteHorse VI Ltd./WhiteHorse VI LLC's issuance is a CLO securitization backed by a revolving pool consisting primarily of broadly syndicated senior-secured loans. -- We assigned our preliminary ratings to the class A and B notes. -- The preliminary ratings reflect our view of the transaction's credit enhancement, legal structure, and diversified collateral portfolio, among other factors. NEW YORK (Standard & Poor's) Dec. 17, 2012--Standard & Poor's Ratings Services today assigned its preliminary ratings to WhiteHorse VI Ltd./WhiteHorse VI LLC's $379.5 million floating-rate notes (see list). The note issuance is collateralized loan obligation securitization backed by a revolving pool consisting primarily of broadly syndicated senior-secured loans. The preliminary ratings are based on information as of Dec. 17, 2012. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect our view of: -- The credit enhancement provided to the preliminary rated notes through the subordination of cash flows that are payable to the subordinated notes. -- The transaction's credit enhancement, which is sufficient to withstand the defaults applicable for the supplemental tests (not counting excess spread), and cash flow structure, which can withstand the default rate projected by Standard & Poor's CDO Evaluator model, as assessed by Standard & Poor's using the assumptions and methods outlined in its corporate collateralized debt obligation (CDO) criteria (see "Update To Global Methodologies And AssumptionsRELATED CRITERIA AND RESEARCH Related Criteria -- Counterparty Risk Framework Methodology And Assumptions, May 31, 2012 -- Global CDOs Of Pooled Structured Finance Assets: Methodology And Assumptions, Feb. 21, 2012 -- Methodology For Analyzing Rating Confirmation Requests To Establish Subsidiary Special-Purpose Entities In CDOs, Dec. 9, 2009 -- Update To Global Methodologies And Assumptions For Corporate Cash Flow And Synthetic CDOs, Sept. 17, 2009 -- Surveillance Methodology For Global Cash Flow And Hybrid CDOs Subject To Acceleration Or Liquidation After An EOD, Sept. 2, 2009 -- The Use Of Rating-Based Haircuts In Event Of Default Overcollateralization Tests For CDOs, March 19, 2008 -- Qualification And Treatment Of Current-Pay Obligations In Global Cash Flow CLOs, July 11, 2007 -- Structured Finance Criteria Introduced For Cayman Islands Special-Purpose Entities, July 18, 2002 Related Research -- Presale: WhiteHorse VI Ltd./WhiteHorse VI LLC, Dec. 17, 2012 -- Global Structured Finance Scenario And Sensitivity Analysis: The Effects Of The Top Five Macroeconomic Factors, Nov. 4, 2011 -- CDO Spotlight: Standard & Poor's Surveillance Process For Monitoring U.S. Cash Flow CLO Transactions, April 14, 2011 PRELIMINARY RATINGS ASSIGNED WhiteHorse VI Ltd./WhiteHorse VI LLC Class Rating Amount A-1L AAA (sf) 262.5 A-2L AA (sf) 36.0 A-3L (deferrable) A (sf) 36.0 B-1L (deferrable) BBB (sf) 18.5 B-2L (deferrable) BB- (sf) 17.5 B-3L (deferrable) B (sf) 9.0 Subordinated notes NR 36.0 NR--Not rated.