Fitch assigns Bilbao CLO II DAC reset final ratings

Fitch assigns Bilbao CLO II DAC reset final ratings

Fitch Assigns Bilbao CLO II DAC Reset Final Ratings

Fitch Ratings has assigned final ratings to Bilbao CLO II Designated Activity Company (DAC) following a reset of the collateralized loan obligation (CLO) structure, as disclosed in its September 27, 2024, research update. The ratings action reflects Fitch's evaluation of the CLO's credit quality, structural features, and alignment with regulatory requirements.

Bilbao CLO II DAC, a securitization vehicle managed under Irish designated activity company regulations, underwent a routine reset process to realign its collateral portfolio and capital structure. Resets are standard in CLO operations, enabling managers to optimize asset composition and risk profiles while maintaining compliance with rating agency criteria. Fitch's final ratings incorporate its assessment of the updated collateral diversification, leverage ratios, and cash flow dynamics post-reset.

The upgrade announced in September 2024 indicates Fitch's confidence in the CLO's structural resilience and its ability to withstand moderate credit stress scenarios. However, the agency emphasized that the ratings depend on ongoing adherence to covenants, including concentration limits and reinvestment period performance. Investors are advised to monitor the CLO's operational compliance and market conditions, which could influence future ratings stability.

As of February 2026, no further rating actions have been reported for Bilbao CLO II DAC. The entity remains subject to periodic Fitch reviews, consistent with standard surveillance practices for structured finance instruments.

For detailed analysis, investors should refer to Fitch's full research report and the CLO's offering documents. The ratings do not constitute a recommendation to buy, sell, or hold securities but provide an independent credit assessment based on available data.

https://www.fitchratings.com/research/structured-finance/fitch-upgrades-bilbao-clo-ii-dac-27-09-2024: Fitch Ratings, Structured Finance Research, September 27, 2024.