CLO Brief: Limited Repercussions From Altice Downgrade

This report does not constitute a rating action. Even though Altice International is among the largest individual issuers of debt to rated European CLOs, the downgrade is unlikely to have significant knock-on effects on CLOs. This is because CLOs have no forced-sale mechanism that requires them to sell the downgraded assets and realize the losses. All else being equal, even another downgrade of Altice International or the group's default would have limited effects on the performance of most CLOs. On Feb. 7, 2025, we downgraded Altice International to 'CCC+' from 'B-' due to weaker-than-expected results for 2024 and the increased risk of a distressed exchange. European CLOs' total exposure to Altice Financing and Altice Finco amounts to €959 million and

...February 12, 2025 This report does not constitute a rating action. The downgrade of Altice International S.a r.l will not affect European collateralized loan obligations (CLOs) materially. Even though Altice International is among the largest individual issuers of debt to rated European CLOs, the downgrade is unlikely to have significant knock-on effects on CLOs. This is because CLOs have no forced-sale mechanism that requires them to sell the downgraded assets and realize the losses. All else being equal, even another downgrade of Altice International or the group's default would have limited effects on the performance of most CLOs....

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