OREANDA-NEWS. S&P Global Ratings today raised its ratings on the class A-2, B, C, and D notes from Golub Capital Partners CLO 11 Ltd. At the same time, we affirmed our ratings on the class A-1 notes from the same transaction.

Today's rating actions follow our review of the collateralized loan obligation (CLO) transaction's performance using data from the Aug. 9, 2016 trustee report.

The upgrades reflect the transaction's $132.48 million in paydowns to the class A-1 notes since our September 2012 rating actions. These paydowns resulted in improved reported overcollateralization (O/C) ratios since the September 2012 trustee report, which we used for our effective date review:The class A-2 O/C ratio improved to 154.43% from 136.86%.The class B O/C ratio improved to 133.67% from 123.74%.The class C O/C ratio improved to 122.52% from 116.20%.The class D O/C ratio improved to 113.08% from 109.52%.The transaction has also benefited from collateral seasoning, as the reported weighted average life has declined to 3.31 years from 5.47 years as of effective date analysis, decreasing the risk profile of the underlying portfolio.

The affirmation of the 'AAA (sf)' rating on the class A-1 notes reflects our view that the credit support available is commensurate with the current rating level.

Our review of the transaction relied, in part, on a criteria interpretation with respect to "CDOs: Mapping A Third Party's Internal Credit Scoring System To Standard & Poor's Global Rating Scale," published May 8, 2014. This interpretation allows us to use a limited number of public ratings from other Nationally Recognized Statistical Rating Organizations (NRSROs) to assess the credit quality of assets not rated by S&P Global Ratings. The criteria provide specific guidance for the treatment of corporate assets not rated by S&P Global Ratings, while the interpretation outlines the treatment of securitized assets.

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.