KBRA assigns a rating of ‘AAA’ for Senior Notes and ‘AA-’ to the Mandatory Redeemable Preferred Shares (“MRPS”) issued by abrdn Asia-Pacific Income Fund, Inc. (NYSE: FAX) (“FAX” or the “Fund”).

The Fund is registered under the Investment Company Act of 1940 and is a non-diversified closed-end investment fund. The investment adviser to the Fund is abrdn Asia Limited and the subadviser is abrdn Investments Limited. 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.

Key Credit Considerations

The ratings are driven primarily by FAX’s asset coverage, liquidity and management experience. As of March 31, 2023, senior asset coverage and total asset coverage was 364% and 314%, respectively.

Rating Sensitivities

Changes in asset coverage can occur throughout the life of a transaction. These variations can often be driven by changes to the Fund’s NAV, which can be due to actual or anticipated defaults and losses, as well as reassessment of the underlying asset values. The KBRA ratings process, however, incorporates a certain degree of tolerance to changes in asset coverage levels. A deterioration in asset coverage levels below the Investment Company Act of 1940 requirements and the Fund manager’s inability to liquidate assets and demonstrate intention to cure within the allowed 30-day period could impact the current ratings.

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Related Publications

• 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.

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