Standard & Poors last week upgraded 17 tranches from four CLOs. The rating agency upgraded four tranches to 'AAA' and downgraded a tranche from 'BB' to 'B'.

Meanwhile, S&P said that 146 tranches from 35 transactions are still on credit watch positive and none are on credit watch negative.

Specifically, S&P placed Delta Air Lines ('B'), which is the 40th largest position and is in 218 CLOs on positive outlook. The view is based on expectations of improving credit metrics, which analysts think of as a "slight credit positive."

The increased earnings and debt reduction might lead to an upgrade, according to the rating agency.

No offering holds over 2% in the credit. In total, CLOs hold 46% of Delta’s term loan due April 2017, analysts reported. The firm also has 17% in the term loan that is due March 2016 and 17% in the revolver that is due Mar 2013.

The new-issue market slowed last week with only one transaction that priced, analysts stated. Year-to-date issuance is $14.2 billion from 33 deals, which includes presales for deals yet to price. This number is equivalent to  an annual rate of $35 billion, S&P analysts stated.

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