Fitch Affirms Millennium Partners' IDRs at 'BBB/F2'; Outlook Stable

CHICAGO--(Business Wire)--
Fitch Ratings has affirmed the long- and short-term Issuer Default
Ratings (IDRs) of Millennium Partners, L.P. (Millennium) as follows:

--Long-term IDR at 'BBB';

--Short-term IDR at 'F2'.

The Rating Outlook is Stable.

Ratings are assigned to Millennium Partners, L.P., the master fund
in a master-feeder structure. Ratings are based on the fund's stable
performance, relatively low leverage at the master fund level, high
asset base liquidity (heavily concentrated in equities), and risk
management discipline (as demonstrated by the fund's historical
performance).

Historic risk-adjusted investment performance has been strong
(compared to traditional and alternative indices). Monthly returns are
narrowly distributed around a positive mean with very few positive or
negative outliers. Senior management personnel are highly experienced
and are well-qualified in multiple disciplines; most have significant
tenure at the fund as well. The risks of the fund are centrally
managed by a small group of executives with material ownership in the
fund. Ultimate control is concentrated in Millennium's founder, Israel
Englander. Investor interests are aligned with Millennium management
and staff interests, as approximately 17% of the fund is currently
employee-owned.

The fund's investor base is primarily institutional and is
well-diversified. Importantly, all investors have Special Withdrawal
Rights if Mr. Englander (59 years old) leaves the fund or cannot
continue working. Millennium's structure is sufficiently flexible that
Fitch believes an orderly liquidation would likely occur if most
investors exercised their Rights options.

Increased equity and credit market volatility has only modestly
impacted fund performance. Millennium has recently taken steps to
further diversify its sources of financing and execution. Substantial
growth in assets under management has occurred over the last year
driven by strong investor inflows and continued good risk-adjusted
investment performance. The fund's strategy and redemption gates and
lock-ups have been reasonably consistent over the years. As a result,
Fitch would expect any sudden redemption pressures to be met in an
orderly fashion, if required.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Eileen Fahey, CFA, 312-368-5468, Chicago
Daniel Barile, 212-908-0885, New York
or
Media Relations:
Kenneth Reed, 212-908-0540, New York

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