S&P rates Blackstone notes A+

Standard & Poor’s said it assigned an A+ rating to Blackstone Holdings Finance Co. LLC’s proposed senior unsecured notes due 2045.

The size of the offering has not been finalized and will be subject to market conditions, but the agency said it assumed the amount will be no more than $500 million and no less than $400 million.

The notes will be fully and unconditionally guaranteed on a joint and several basis by the Blackstone Group LP, Blackstone Holdings I LP, Blackstone Holdings II LP, Blackstone Holdings III LP and Blackstone Holdings IV LP.

The long-term issuer credit rating on Blackstone Group LP is A+ and the outlook is stable.

The group’s management expects to use the majority of the proceeds to seed new strategies and grow existing businesses, S&P said.

Pro forma for this transaction, assuming the amount of the new issuance is $500 million, S&P said it expects total debt-to-adjusted EBITDA will remain at less than 1.5x.

The ratings reflect the group’s strong business risk profile because of its solid market position within the global alternative asset-management industry and significant diversification within its business lines, the agency said.

The stable outlook considers an expectation that the company will maintain its leading market position and favorable reputation among alternative asset managers, S&P added.

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