OREANDA-NEWS. Fitch Ratings has assigned an 'AAAsf' rating to the class A-R refinancing notes issued by Magnetite VI, Limited/Corp. (Magnetite VI). The Rating Outlook is Stable.

KEY RATING DRIVERS
Fitch has been notified of the proposed Second Supplemental Indenture that would cause a refinancing of outstanding notes and amend certain terms and definitions of the indenture.

On June 15, 2015, Magnetite VI issued refinancing notes as class A-R, B-R, C-R, D-R, and E-R notes and applied the net issuance and sales proceeds thereof to redeem the existing class A, B, C, D and E notes at par (plus accrued interest), respectively. Each class of refinancing notes was issued in the same amount and has the same terms as the corresponding class of original notes, except that the spread on each refinanced class was reduced. The subordinated notes will not be refinanced. The new refinancing notes are restricted from being refinanced again in the future.

The overall reduction in the cost of the liabilities is viewed as a credit positive and no other material changes were made to the capital structure or underlying portfolio as a result of the refinancing. The collateral portfolio continues to display stable performance since the last review on Aug. 29, 2014. The credit enhancement remains the same on the refinancing notes. As a result, cash flow model analysis was not conducted for this review. Fitch has determined that the ratings on the refinancing notes shall be assigned at the same rating level as the original notes.

RATING SENSITIVITIES

The ratings of the notes may be sensitive to the following: asset defaults, portfolio migration, including assets being downgraded to 'CCC', portions of the portfolio being placed on Rating Watch Negative, overcollateralization (OC) or interest coverage (IC) test breaches, or breach of concentration limitations or portfolio quality covenants. Fitch conducted rating sensitivity analysis on the closing date of Magnetite VI, incorporating increased levels of defaults and reduced levels of recovery rates, among other sensitivities.

Initial Key Rating Drivers and Rating Sensitivity are further described in the New Issue Report published on Sept. 26, 2012.

Magnetite VI is an arbitrage, cash flow collateralized loan obligation (CLO) that closed on Sept. 13, 2012 and is managed by BlackRock Financial Management, Inc.

DUE DILIGENCE USAGE
No third party due diligence was reviewed in relation to this rating action.

Fitch has assigned the following ratings:
--\$245,750,000 class A senior secured floating rate notes, 'PIF';
--\$245,750,000 class A-R senior secured floating rate notes, 'AAAsf'; Outlook Stable.

Fitch does not rate the class B-R, class C-R, class D-R, class E-R or the subordinated notes.