Fitch: Blackstone notes A+

Fitch Ratings said it expects to assign a rating of A+ to the $350 million 30-year 4.45% unsecured debt issuance from Blackstone Holdings Finance Co. LLC.

Blackstone Holdings Finance has a long-term issuer default rating of A+, short-term issuer default rating of F1 and unsecured debt rating of A+'.

Blackstone Group LP and Blackstone Holdings I, II, III, and IV LP have long-term issuer default ratings of A+ and short-term issuer default rating of F1.

The new notes rank equally with existing unsecured debt and benefit from a joint and several guarantee from the Blackstone Group LP and Blackstone Holdings I, II, III, and IV LP, which collect all management fees, incentive income and investment income of the firm, Fitch said.

The proceeds will be used for general corporate purposes, including the funding of balance sheet co-investment commitments and potential acquisition opportunities, the agency said.

The ratings reflect the company’s strong competitive position as a global alternative asset manager, experienced management team and solid investment track record, Fitch said.

The $350 million debt issuance will push the company’s leverage ratio to 2.24x from 1.92x as of March 31, the agency said.

The outlook for the sector also is stable, reflecting the relative stability of core operating fundamentals given the locked-in nature of a large portion of fee revenue, Fitch said.

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