S&P raises Avoca CLO XXIII B-1 to D rtgs; affirms other rtgs

S&P Global Ratings has downgraded the B-1 class of Avoca CLO XXIII DAC to 'D' from 'B-', while affirming all other ratings for the collateralized loan obligation. The downgrade reflects the current status of the cash flows and performance of the underlying assets in the B-1 tranche. S&P noted that the remaining ratings are supported by the continued stability of the broader collateral portfolio and structural protections in place. The move follows a routine review of the CLO’s performance and adherence to its legal and operational framework. Investors are advised to monitor the implications of the downgrade on liquidity and credit risk profiles. The firm emphasized that the downgrade does not necessarily indicate a broader deterioration in the CLO’s overall credit quality.