OREANDA-NEWS. S&P Global Ratings today assigned its preliminary credit ratings to the class A-1, A-2A, A-2B, B, and C notes from CARLYLE GLOBAL MARKET STRATEGIES EURO CLO 2013-2 Ltd., a collateralized loan obligation (CLO) managed by CELF Advisors LLP.

The replacement notes will be issued via a proposed supplemental trust deed. The replacement notes are expected to be issued at a lower spread over Euro Interbank Offered Rate (EURIBOR; lower coupon, for the fixed-rate class A-2B notes) than the original notes they replace. The cash flow analysis demonstrates, in our view, that the replacement notes have adequate credit enhancement available at the current rating levels.

The transaction has experienced overall stable performance since our previous rating affirmations on July 19, 2016 (see "Ratings Affirmed In European Cash Flow CLO Transaction CARLYLE GLOBAL MARKET STRATEGIES EURO CLO 2013-2 Following Review"). All coverage ratios are well above the minimum triggers, and the post-refinance structure has improved our cash flow results.

On the Oct. 17, 2016 refinancing date, the proceeds from the issuance of the replacement notes are expected to redeem the original notes, upon which we anticipate withdrawing the ratings on the original notes and assigning ratings to the replacement notes. However, if the refinancing doesn't occur, we may affirm the ratings on the original notes and withdraw our preliminary ratings on the replacement notes.