KBRA Assigns a Rating to Series B Mandatory Redeemable Preferred Shares and Affirms Ratings of the Senior Notes Issued by abrdn Asia-Pacific Income Fund, Inc. (FAX)

Rhea-AI Summary

KBRA has assigned a 'AA-' rating to Series B Mandatory Redeemable Preferred Shares (MRPS) issued by abrdn Asia-Pacific Income Fund, Inc. (NYSE: FAX). The agency also affirmed ratings for Series C, D, and E Senior Notes, with a Stable Outlook for all ratings. The ratings are supported by:

• Asset coverage (330% as of September 11, 2024)
• Credit quality and liquidity of underlying assets
• Management experience of the Fund's investment adviser, abrdn Asia

FAX is a non-diversified closed-end investment fund registered under the Investment Company Act of 1940. It primarily invests in Asia Pacific debt securities and has been listed on the NYSE since its IPO in April 1986.

Positive

• KBRA assigned a 'AA-' rating to Series B Mandatory Redeemable Preferred Shares
• Ratings for Series C, D, and E Senior Notes were affirmed
• Stable Outlook on all ratings
• Strong asset coverage of 330% as of September 11, 2024
• Fund is managed by experienced investment adviser abrdn Asia

Negative

• None.

Insights

Financial Analyst

KBRA's rating assignment and affirmation for abrdn Asia-Pacific Income Fund, Inc. (FAX) is a positive development for the fund. The 'AA-' rating for Series B Mandatory Redeemable Preferred Shares and affirmation of ratings for Senior Notes indicate strong creditworthiness. The stable outlook suggests confidence in the fund's financial stability. Key strengths include robust asset coverage at 330%, high-quality underlying assets and experienced management. FAX's focus on Asia Pacific debt securities offers investors exposure to a potentially high-growth market. However, investors should note that as a non-diversified fund, it may carry higher risk. The fund's long operating history since 1986 and NYSE listing provide additional credibility. While this rating action is positive, it's important for investors to monitor the fund's performance and market conditions in the Asia Pacific region, as these can impact returns and risk profile.

NEW YORK--(BUSINESS WIRE)-- KBRA assigns a 'AA-' rating to Series B Mandatory Redeemable Preferred Shares (“MRPS”) issued by abrdn Asia-Pacific Income Fund, Inc. (NYSE: FAX) (“FAX” or the “Fund”). Additionally, KBRA affirms the rating assigned to Series C, D and E Senior Notes. The Outlook on all ratings is Stable.

The ratings continue to be supported by the asset coverage, the credit quality and liquidity of the underlying assets, and the management experience of the Fund's investment adviser, abrdn Asia Limited. As of September 11, 2024, total asset coverage was 330%. The Fund is registered under the Investment Company Act of 1940 and is a non-diversified closed-end investment fund. The Fund had its Initial Public Offering in April 1986, and its shares are listed on the New York Stock Exchange under the symbol FAX. The Fund invests primarily in Asia Pacific debt securities.

To access rating and relevant documents, click here.

Click here to view the report.

Related Publications

• abrdn Asia-Pacific Income Fund, Inc. (FAX) Surveillance Report
• KBRA Assigns Ratings to the Senior Notes and Mandatory Redeemable Preferred Shares Issued by abrdn Asia-Pacific Income Fund, Inc. (FAX)

Methodologies

• Funds: Investment Fund Debt Global Rating Methodology
• ESG Global Rating Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

This credit rating is endorsed by Kroll Bond Rating Agency Europe Limited for use in the European Union and by Kroll Bond Rating Agency UK Limited for use in the UK. Information on a credit rating’s endorsement status is available on its rating page at KBRA.com.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

Doc ID: 1006232

View source version on businesswire.com: https://www.businesswire.com/news/home/20241003679629/en/

Analytical Contacts

Aleksandra Zhirkova, Analyst (Lead Analyst)

+1 646-731-1213

aleksandra.zhirkova@kbra.com

Danica Rakic, Associate Director

+44 20 8148 1012

danica.rakic@kbra.com

Thomas Speller, Managing Director, Head of European Funds

+44 20 8148 1025

thomas.speller@kbra.com

Gopal Narsimhamurthy, Senior Managing Director, Global Head of Funds Ratings (Rating Committee Chair)

+1 646-731-3392

gopal.narsimhamurthy@kbra.com

Business Development Contact

Constantine Schidlovsky, Senior Director

+1 646-731-1338

constantine.schidlovsky@kbra.com

Source: Kroll Bond Rating Agency, LLC

FAQ

What rating did KBRA assign to FAX's Series B Mandatory Redeemable Preferred Shares?

KBRA assigned a 'AA-' rating to the Series B Mandatory Redeemable Preferred Shares (MRPS) issued by abrdn Asia-Pacific Income Fund, Inc. (NYSE: FAX).

What is the current asset coverage for FAX as of September 11, 2024?

As of September 11, 2024, the total asset coverage for FAX was 330%.

When did abrdn Asia-Pacific Income Fund, Inc. (FAX) have its Initial Public Offering?

FAX had its Initial Public Offering in April 1986.

What type of securities does FAX primarily invest in?

FAX primarily invests in Asia Pacific debt securities.