<div id="readability-page-1"><div>Fitch Ratings-Chicago-18 December 2025:Fitch Ratings has upgraded Pershing Square Holdings, Ltd.'s (PSH) Long-Term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BBB+' from 'BBB'. The Rating Outlook is Stable.Key Rating DriversRating Upgrade: The rating upgrade reflects PSH's larger size, driven by organic growth, which provides greater economies of scale; a reduction in single-name concentration; and the reduction of management fees PSH pays to its investment manager, Pershing Square Capital Management, L.P. (PSCM) in connection with its strategic transaction with Howard Hughes Holdings, Inc. (HHH). Further, Fitch expects PSH's incentive fees to decline as PSCM raises additional fee-paying assets under management (AUM) through new funds and other investment vehicles. Fitch would consider additional fee reductions as supportive of maintaining the rating at this level.Permanent Capital and Management Alignment: PSH's ratings remain supported by the lack of redemption risk as a permanent capital vehicle; its moderate leverage with limited pay-out obligations; strong asset overcollateralization relative to debt; a highly liquid investment portfolio; PSCM's strong performance track record; and the alignment of management's and PSH's interests via management's ownership of PSH common stock.Rating Constraints: Rating constraints include elevated key person risk associated with PSCM's founder, William Ackman; still-high investment portfolio concentration, given the limited number of holdings; an evolving portfolio (and periodic hedge) composition; and a less formalized liquidity policy and quantitative risk management framework relative to peers.Strategic Initiatives: On Dec. 18, 2025, PSH announced plans to invest up to $1.0 billion in non-interest-bearing perpetual preferred stock issued by HHH ('BB'/Stable) to support HHH's $2.1 billion acquisition of specialty insurer Vantage Group Holdings Ltd. The preferred stock will convert into Vantage common equity if HHH does not redeem it within seven years of closing. PSH expects to fund its investment with cash on hand and potential future asset sales.Although the transaction aligns with PSCM's stated objective to transform and increase the value of HHH, Fitch notes that it represents a modest deviation from PSH's investment strategy, incrementally reduces PSH's portfolio liquidity, and increases PSH's portfolio concentration to a lower-rated entity (inclusive of the look-through exposure to Vantage). Still, PSH's portfolio would remain predominantly liquid (95%) and Fitch expects the preferred stock to be redeemed over time.The launch of Pershing Square USA, Ltd. (PSUS), a U.S. closed-end fund, remains pending. In 2024, PSH amended its agreement with PSCM to receive a fee reduction equivalent to 20% of management fees earned on PSUS, which would be applied to offset PSH's incentive fees. If this narrows PSH's discount to NAV, it could strengthen its ability to issue equity capital and help offset leverage increases caused by market declines.Key Person Risk: PSH faces elevated key person risk due to William Ackman's influence. A key person event trigger in its bonds would cut the maximum leverage ratio (debt/total capital) to 25% from 33%, with 180 days to cure before becoming an incurrence covenant—an incremental positive for bondholders. If triggered, PSCM's CIO Ryan Israel would become portfolio manager, partially mitigating key person risk.Highly Concentrated Portfolio: As of Oct. 31, 2025, PSH managed $19.3 billion in AUM (PSCM core strategy: $21.4 billion). PSH cut its Universal Music Group stake in March 2025, which represented 11% of AUM as of Oct. 31, 2025, down from 21% previously. However, concentration remains high: Alphabet was 14% of AUM, and the top three positions (Alphabet, Uber, Brookfield) comprised 41% of AUM.Strong Returns Drive Organic Growth: PSH has delivered solid results in recent years, outperforming the S&amp;P 500, net of fees, in five of the past seven years. Year-to-date through October 2025, PSH has outperformed the S&amp;P 500, with attribution spread across several holdings. Fitch expects heightened volatility to persist due to the portfolio's high concentration.Asymmetric Hedges: Historically, PSH's performance benefited from sizeable hedging gains (e.g., interest rate swaptions, credit default swaps) when asymmetric payoffs were expected. Fitch cautions these strategies carry risk if markets move against PSH or if they do not effectively hedge PSH's core investment portfolio. PSH currently has no asymmetric hedges, as it holds no specific views on potential outsized opportunities.Moderate Leverage: PSH's debt-to-equity leverage was 0.24x as of Oct. 31, 2025, up from 0.19x a year earlier, reflecting opportunistic debt issuance during 2025. Still, leverage remains within Fitch's 'a' category benchmark range of 0.15x-0.35x for investment companies. Net leverage is 0.14x, supported by PSH's sizable cash balance. Fitch expects leverage to fluctuate, given PSH's highly concentrated portfolio and shareholder capital returns. However, Fitch would not expect leverage to rise meaningfully above existing levels.Fitch expects dividend and buyback activity to remain reasonable. According to PSH's dividend policy, dividends increase with NAV and have a cap on future payments and future share buybacks are constrained by the U.K. Takeover Code, which would require insiders to make a takeover offer for the entire company if insider ownership reaches 30% (currently 28%).Liquid Balance Sheet: Fitch views PSH's liquidity positively, with 98% in cash or Level 1 securities. PSH typically holds minority stakes, reducing market impact from sales, and has historically exited positions without heavy block trades, limiting discounts. Debt is well-laddered, with the next maturity in October 2027 (EUR500 million).RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade-- Investment underperformance that results in debt to equity exceeding 0.30x on a sustained basis; a material increase in single-name or overall portfolio concentrations; a fundamental shift in portfolio composition away from higher quality, liquid holdings; additional capital return initiatives, such as a material increase in share repurchase activity or a meaningful increase in the common dividend; and/or legal or regulatory actions that result in meaningful financial obligations for PSH and/or reputational damage to its manager.-- Upon the occurrence of a key person event, Fitch would likely place PSH's ratings on Rating Watch Negative until the required deleveraging is undertaken and more clarity is available with respect to the long-term strategic direction and management of the vehicle.Factors that Could, Individually or Collectively, Lead to Positive Rating Action/UpgradePositive rating potential is limited in the near term and would require a material strengthening of the franchise, including increased scale and diversification.Additional factors that could, individually or collectively, lead to positive rating action include:-- Significantly improved portfolio diversification;-- A sustained reduction in debt to equity below 0.15x;-- Maintenance of the long-term investment performance track record and liquidity maintained near current levels.DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERSThe equalization of the senior unsecured debt rating with PSH's IDR reflects the lack of senior secured debt and the availability of meaningful unencumbered asset coverage, which suggests average recovery prospects under a stress scenario.DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIESThe unsecured debt rating is primarily sensitive to changes in PSH's Long-Term IDR and, secondarily to changes in Fitch's assessment of the recovery prospects of the debt class.ADJUSTMENTS--The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP.--The Capitalization &amp; Leverage score has been assigned below the implied score due to the following adjustment reasons: Risk profile and business model (negative).--The Funding, Liquidity &amp; Coverage score has been assigned above the implied score due to the following adjustment reason: Liquidity coverage (positive).REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING The principal sources of information used in the analysis are described in the Applicable Criteria. ESG ConsiderationsPershing Square Holdings, Ltd. has an ESG Relevance Score of '4' for Governance Structure due to the presence of elevated key person risk as it relates to the founder William Ackman, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors.Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg.Pershing Square Holdings, Ltd.; Long Term Issuer Default Rating; Upgrade; BBB+; Rating Outlook Stable----senior unsecured; Long Term Rating; Upgrade; BBB+Contacts:Primary Rating AnalystDafina Dunmore, CFASenior Director+1 312 368 3136dafina.dunmore@fitchratings.comFitch Ratings, Inc.One North Wacker DriveChicago, IL 60606Secondary Rating AnalystMeghan Neenan, CFAManaging Director+1 212 908 9121meghan.neenan@fitchratings.comCommittee ChairpersonChelsea Richardson,Senior Director+1 212 612 7899chelsea.richardson@fitchratings.comMEDIA RELATIONS: Cristina Bermudez, New York, Tel: +1 212 612 7892, Email: cristina.bermudez@thefitchgroup.comAdditional information is available on www.fitchratings.comADDITIONAL DISCLOSURESDodd-Frank Rating Information Disclosure FormSolicitation StatusAdditional Disclosures For Unsolicited Credit RatingsEndorsement StatusEndorsement PolicyALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 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PSHZF

Fitch Ratings upgraded Pershing Square Holdings' Long-Term Issuer Default Rating to 'BBB+' from 'BBB', with a stable outlook. The upgrade reflects PSH's growth, reduced management fees, and strategic investments. Despite increased portfolio concentration, PSH maintains liquidity and moderate leverage. Key person risk remains due to William Ackman's influence. Fitch notes PSH's strong returns and cautions on asymmetric hedging risks. Strategic initiatives include investing in Howard Hughes Holdings' acquisition of Vantage Group Holdings, impacting portfolio liquidity and concentration.

Fitch Upgrades Pershing Square Holdings, Ltd. to 'BBB+'; Outlook Stable