S&P: 'Sooo...I Don't Know If You Know This But -40 Isn't So Good'

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S.&P. said the outlook for $500 million in debt of the Citadel Kensington Global Strategy Fund and the Citadel Wellington fund was negative and it warned that the ratings could be further downgraded if their actions and "market conditions fail to result in lower volatility and performance stabilization." S.&P. also said it was watching the pace of redemptions.
"The downgrade reflects Kensington/Wellington's negative performance in September and October of this year," said Daniel Koelsch, a Standard & Poor's credit analyst. He said their performance was inconsistent with "BBB+" ratings.
Accordingly, the funds' credit ratings were cut to BBB/A-3 from BBB+/A-2.
Mr. Koelsch noted in a statement that the year-to-date performance of Kensington/Wellington was approximately a negative 39.5 percent as of Oct. 31.

S.&P. Cuts Its Ratings on 2 Citadel Hedge Funds [Dealbook]