TEXT-S&P rates WhiteHorse VI notes

Fri Jan 18, 2013 4:36pm EST

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 ratings to the class A and B notes.
     -- The ratings reflect our view of the transaction's credit enhancement, 
legal structure, and diversified collateral portfolio, among other factors.
 
NEW YORK (Standard & Poor's) Jan. 18, 2013--Standard & Poor's Ratings Services 
today assigned its ratings to WhiteHorse VI Ltd./WhiteHorse VI LLC's $379.5 
million floating-rate notes (see list).

The note issuance is a collateralized loan obligation securitization (CLO) 
backed by a revolving pool consisting primarily of broadly syndicated 
senior-secured loans.

The ratings reflect our view of: 
     -- The credit enhancement provided to the 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.
     -- The transaction's legal structure, which we expect to be 
bankruptcy-remote.
     -- The diversified collateral portfolio, which consists primarily of 
broadly syndicated, speculative-grade, senior secured term loans.
     -- The asset manager's experienced management team.
     -- The timely interest and ultimate principal payments on the rated 
notes, which we assessed using our cash flow analysis and assumptions 
commensurate with the assigned ratings under various interest-rate scenarios, 
including LIBOR ranging from 0.3105%-13.8391%. 
     -- The transaction's overcollateralization and interest coverage tests, a 
failure of which will lead to the diversion of interest and principal proceeds 
to reduce the balance of the rated notes outstanding.
     -- The transaction's reinvestment overcollateralization test, a failure 
of which will lead to the reclassification of excess interest proceeds that 
are available prior to paying uncapped administrative expenses and fees, 
collateral manager incentive fees, and subordinated note payments to principal 
proceeds for the purchase of additional collateral assets during the 
reinvestment period.

STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating 
relating to an asset-backed security as defined in the Rule, to include a 
description of the representations, warranties and enforcement mechanisms 
available to investors and a description of how they differ from the 
representations, warranties and enforcement mechanisms in issuances of similar 
securities.

The Standard & Poor's 17g-7 Disclosure Report included in this credit rating 
report is available at "RELATED CRITERIA AND RESEARCH

Related Criteria
     -- Counterparty Risk Framework Methodology And Assumptions, Nov. 29, 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
 
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.
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