Moody's Ratings assigns rating to one class of CLO refinancing by Ares LX LLC

Moody's Ratings assigns rating to one class of CLO refinancing by Ares LX LLC

Moody’s Assigns Rating to Ares LX CLO Ltd. Refinancing Transaction
February 19, 2026

Moody’s Investors Service has assigned a rating to one class of securities issued under a refinancing transaction by Ares LX CLO Ltd., as disclosed in recent regulatory filings. The move aligns with standard practices for collateralized loan obligations (CLOs), where rating agencies evaluate the credit quality of underlying assets, structural safeguards, and risk allocation mechanisms to determine appropriate credit ratings.

The refinancing transaction involves reconfiguring existing debt structures to optimize capital efficiency and align with evolving market conditions. Moody’s assessment likely considered factors such as the composition of the loan portfolio, leverage levels, and cash flow dynamics, which are critical in determining the credit profile of each security class. While specific rating details, such as the assigned credit score or outlook, were not included in publicly available summaries, Moody’s ratings typically reflect the agency’s analysis of both quantitative metrics and qualitative risks.

Ares LX CLO Ltd. is part of a broader series of CLO vehicles managed by Ares Management Corporation, a global alternative asset manager. Refinancing activities are common in the CLO market, enabling managers to extend maturity profiles, reduce costs, or reallocate capital. Investors are advised to review the full prospectus and Moody’s detailed methodology for a comprehensive understanding of the rating rationale.

The transaction underscores continued activity in the CLO sector, which remains a key financing tool for leveraged loan markets. As of February 2026, the sector has shown resilience amid macroeconomic uncertainties, though refinancing conditions remain sensitive to interest rate trends and credit spreads.

For further details on Moody’s ratings and the Ares LX CLO Ltd. transaction, refer to the official regulatory filings.

(https://www.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/3519914): S&P Global Market Intelligence
(https://finance.yahoo.com/news/ares-xlii-clo-ltd-moodys-215806080.html): Yahoo Finance