Fitch rates Kayne Anderson notes AAA

Fitch Ratings said it expects to assign an AAA rating to Kayne Anderson MLP Investment Co.'s $140 million of senior notes and an AA rating to its $50 million of mandatory redeemable preferred stock.

The agency said it expects to finalize the ratings on the senior notes and preferreds when the offering closes.

The expected ratings are based on sufficient asset coverage to be provided to the senior notes and preferreds by the fund's portfolio, structural protections to be afforded by mandatory de-leveraging provisions in the event of asset coverage declines, the legal parameters that govern the fund's operations and the capabilities of KA Fund Advisors, LLC as investment advisor, Fitch said.

The proceeds will be used to repay certain current borrowings, to make new portfolio investments and for general corporate purposes, the agency said.

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