S&P Cuts Counterparty Rating On Citadel Hedge Funds
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According to reports from Bloomberg, S&P rating service cut the counterparty credit rating on two of Citadel's hedge funds, Kensington Global and Wellington, due to losses. The ratings were cut to BBB/A-3 from BBB+/A-2 after losses in September and October.
S&P said the ratings could be cut further if the funds' actions and market conditions fail to result in lower volatility and performance stabilization.
Ken Griffin's Cidatel reduced their leverage from 5.2 times assets to 3.5 times assets since the start of the year. Cidatel client withdrawals have been less than 10% of assets for the current quarter, S&P said.
S&P said the ratings could be cut further if the funds' actions and market conditions fail to result in lower volatility and performance stabilization.
Ken Griffin's Cidatel reduced their leverage from 5.2 times assets to 3.5 times assets since the start of the year. Cidatel client withdrawals have been less than 10% of assets for the current quarter, S&P said.
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