S&P rates KKR Financial notes BBB

S&P said it assigned its BBB issue-level rating on KKR Financial Holdings LLC's new $375 million senior unsecured notes due in 2032.

A portion of the proceeds will be used to refinance its $115 million of 2042 notes, which recently became callable.

On a pro forma basis, S&P said it views the transaction as leverage neutral because the company redeemed its $258.8 million of 8.375% senior notes that were due in 2041 late last year.

The agency views the issuance positively because the company is significantly lowering its cost of capital while maintaining a long-dated maturity profile.

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