S&P: Pershing Square notes BBB

Standard & Poor’s said it assigned a BBB long-term issuer credit rating on Pershing Square Holdings Ltd.

The agency also said it assigned a BBB rating on the company’s proposed inaugural senior unsecured debt issuance due in 2022.

The outlook is stable.

The ratings reflect the company’s very good investment track record, low operational and product complexity, liquid but concentrated portfolio and permanent capital structure, S&P said.

Since the company is a closed-end fund listed on Euronext Amsterdam, it has permanent capital that is not subject to redemptions, the agency said.

This is positive for the rating, S&P said.

The company has a high-quality investment portfolio with good liquidity because it mainly consists of large cap North American companies that are publicly traded on major stock exchanges, the agency said.

These strengths are balanced by some weaknesses, including a concentrated portfolio of core holdings at any given time and the exposure to headline risk because of its activist investment strategy, S&P said.

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