The transition away from LIBOR is not expected to result in rating changes to CLO notes, according to Fitch Ratings in its report USD CLO LIBOR Transition Will Not Pose Material Risk to CLO Ratings (Experience, Active Management Key to Address Basis Pressures). CLO managers have extensive experience managing basis differences between assets and liabilities in their efforts to maintain robust cash flows. Nearly all Fitch-rated CLOs contain transitional language in their transaction documents that either cause CLO liabilities to fallback to three-month (3M) term SOFR plus a spread adjustment or permits the CLO manager ... (full story)