KBRA Affirms the Issuer Ratings for Citadel’s Flagship Multi-Strategy Hedge Funds and Senior Unsecured Notes Issued by Citadel Finance LLC
22 Apr 2024 | New York
KBRA affirms the Issuer Ratings of BBB assigned to three funds managed by Citadel Advisors LLC (the “Firm”): Citadel Kensington Global Strategies Fund, Citadel Kensington Global Strategies Fund II, and Citadel Wellington (together, the “Rated Funds”). Additionally, KBRA affirms the rating of BBB assigned to the Senior Unsecured Notes (the “Notes”) issued by Citadel Finance LLC which are guaranteed by the Rated Funds. The outlook is stable. KBRA’s Issuer Ratings address the characteristics impacting the fundamental creditworthiness of these funds, which will guarantee payment of the Notes. KBRA’s rating on the Notes addresses the timely payment of interest and ultimate payment of principal.
The ratings reflect Citadel’s long-term performance track record, risk diversification and robust institutional control framework including strong risk management and liquidity management practices. In addition, the ratings consider the unconstrained investment mandate, dependence on confidence-sensitive wholesale funding, and redemption-related risks associated with a leveraged open-end fund structure.
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