Research Update: Citadel Kensington, Kensington II, And Wellington Assigned 'BBB-/A-3' Ratings; Outlook Stable; Senior Notes Rated 'BBB-'

Citadel Kensington Global Strategies Fund Ltd., Citadel Kensington Global Strategies Fund II Ltd., and Citadel Wellington LLC are open-ended funds that engage in active trading in equities, fixed income and macro, credit, commodities, and quantitative strategies. Citadel Finance LLC, a newly created financing vehicle for the funds, is issuing about $500 million of senior notes. We are assigning 'BBB-/A-3' long- and short-term issuer credit ratings to the funds and a 'BBB-' issue rating to the proposed senior unsecured notes that will be issued by Citadel Finance LLC, an entity we view as core to the funds. The stable outlook reflects our expectation that the funds will continue to operate with low leverage (with the S&P Global Ratings adjusted VaR-to-NAV ratio

...- Citadel Kensington Global Strategies Fund Ltd., Citadel Kensington Global Strategies Fund II Ltd., and Citadel Wellington LLC are open-ended funds that engage in active trading in equities, fixed income and macro, credit, commodities, and quantitative strategies. - Citadel Finance LLC, a newly created financing vehicle for the funds, is issuing about $500 million of senior notes. - We are assigning '###-/A-3' long- and short-term issuer credit ratings to the funds and a '###-' issue rating to the proposed senior unsecured notes that will be issued by Citadel Finance LLC, an entity we view as core to the funds. - The stable outlook reflects our expectation that the funds will continue to operate with low leverage (with the S&P Global Ratings adjusted VaR-to-NAV ratio lower than 35%) and adequate liquidity (with the liquidity reserve representing at least 35% of trading capital) over the next 18-24 months....

Research Update