OREANDA-NEWS. S&P Global Ratings today raised its ratings on the class A-2, B, and C notes from Voya CLO V Ltd. We also removed these ratings from CreditWatch, where we placed them with positive implications on July 14, 2016. At the same time, we affirmed our ratings on the class A-1a, A-1b, and D notes from the same transaction (see list).

Today's rating actions follow our review of the transaction's performance using data from the August 2016 trustee report.

The upgrades reflect the transaction's $167.50 million in paydowns to the class A-1a notes since our June 2015 rating actions. These paydowns resulted in improved reported overcollateralization (O/C) ratios since the May 2015 trustee report, which we used for our previous rating actions:

The class A O/C ratio improved to 145.30% from 123.20%.The class B O/C ratio improved to 126.50% from 114.50%.The class C O/C ratio improved to 114.50% from 108.30%.The class D O/C ratio improved to 109.50% from 105.60%.On a standalone basis, the results of the cash flow analysis indicated a higher rating on the class D notes. However, given the minimal cushion available at the higher rating level and the fact that the tranche is at the bottom of the capital structure and would therefore absorb losses first, we affirmed the class D notes in order to offset future potential credit migration in the underlying collateral.

Our review of this transaction included a cash flow analysis, based on the portfolio and transaction as reflected in the aforementioned trustee report, to estimate future performance. In line with our criteria, our cash flow scenarios applied forward-looking assumptions on the expected timing and pattern of defaults, and recoveries upon default, under various interest rate and macroeconomic scenarios. In addition, our analysis considered the transaction's ability to pay timely interest and/or ultimate principal to each of the rated tranches. The results of the cash flow analysis demonstrated, in our view, that all of the rated outstanding classes have adequate credit enhancement available at the rating levels associated with these rating actions.

We will continue to review whether, in our view, the ratings assigned to the notes remain consistent with the credit enhancement available to support them, and will take rating actions as we deem necessary.