Press Release|Structured Credit
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KBRA Affirms Ratings for Cedar Crest 2021-1 LLC and Cedar Crest 2021-2 LLC and Withdraws 3 Ratings for Cedar Crest 2021-1 LLC and 1 Rating for Cedar Crest 2021-2 LLC

28 Oct 2025   |   New York

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KBRA affirms ratings for fourteen classes of notes issued by Cedar Crest 2021-1 LLC (Cedar Crest 2021-1) and Cedar Crest 2021-2 LLC (Cedar Crest 2021-2), two cash flow collateralized loan obligations (CLO) backed by diversified portfolios of broadly syndicated and middle market corporate loans and bonds. Concurrently, KBRA has removed two ratings from Watch Downgrade where they were initially placed on September 16, 2025, and withdrawn those ratings as well as two other ratings, corresponding to four classes of notes which have been paid-in-full. KBRA’s analysis indicated that the existing credit enhancement for the notes is sufficient to support the affirmed ratings. All notes have received timely interest distributions since the transaction closed.

This review is based on information reported by the trustee as of October 2025 and reflects the distributions that have occurred though the October 15 and 17, 2025 payment dates, as well as the October 20, 2025 redemption and payment in full of the class F notes in both transactions, pursuant to the execution of supplemental indentures as of the same date. Following the Watch Placements in Sep 2025, coverage test cushion has widened. Additionally, KBRA’s analysis takes into consideration amendments to the indentures of both transactions, dated October 20, 2025. The supplemental indentures directed the redemption of both Class F notes (Cedar Crest 2021-1 and Cedar Crest 2021-2) from the proceeds of the additional issuance of variable dividend notes in each of those transactions. The amount contributed by the variable dividend notes was equal to the amount required to pay both Class F notes principal and accrued interest in full. KBRA has withdrawn the ratings on both Class F notes.

Cedar Crest 2021-1 and Cedar Crest 2021-2 are collateralized loan obligations (CLO) managed and serviced by Eldridge Structured Credit Advisors, LLC (“Eldridge” or the “servicer”), formerly known as Panagram Structured Asset Management LLC, which closed in September 2021 and December 2021, respectively. The transactions have exited their reinvestment periods and are delevering. Cedar Crest 2021-1 has amortized 100% its Class A notes and approximately 49% of its Class B notes. Cedar Crest 2021-2 has amortized approximately 81.3% of its Class A notes.

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Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

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