Clipper Acquisitions Corp.

The stable outlook reflects our expectation that Clipper's leverage will remain 2.0x-3.0x over the next 12 months, and for fixed-income performance to continue to largely outperform benchmarks.. The stable outlook also incorporates our expectation for modest continued net outflows for the remainder of the year against a backdrop of continued market volatility. We could lower the ratings if leverage increases above 3.0x. We could also lower the ratings if investment performance or net flows weaken materially. We do not expect to raise the ratings in the next 12 months, considering the volatile market. We could raise the ratings over the longer term if leverage remains comfortably below 2.0x and the company's investment performance and net flows remain stable. S&P Global

...Leverage has increased but remains comfortably between 2.0x - 3.0x. Debt to adjusted EBITDA increased to 2.4x in 2021. Leverage ended the year higher than our previous expectation on increasing operational expenses. Market valuation decline has slowed AUM growth. Clipper Acquisition Corp. experienced net inflows in 2020 and 2021. Increased volatility and declines in bond indices and equity market valuations resulted in an 8% decline in AUM during the first quarter of 2022. We expect expenses to be elevated in the near-term. Higher personnel expenses related to bonus payments for an executive departure increased overall expenses in 2021. We expect these payments to continue through the remainder of 2022....

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