Moody's cuts Kayne Anderson

Moody's Investors Service said it downgraded the $370 million senior unsecured notes issued by Kayne Anderson MLP Investment Co. to Aa1 from Aaa. This concludes a review that began in December 2009 on these series of notes.

The downgraded securities include the $75 million series G notes maturing in Jun 2011 to Aa1 from Aaa; $60 million series I notes maturing in June 2012 to Aa1 from Aaa; $125 million series K notes maturing in June 2013 to Aa1 from Aaa; $60 million series M notes maturing in Nov 2014 to Aa1 from Aaa; and $50 million series N notes maturing in Nov 2014 to Aa1 from Aaa.

Moody's said the downgrade was driven by concerns about the thin secondary market liquidity in master-limited partnership equities, along with the fund's concentration in a relatively small sub-segment of the energy sector.

These concerns are partially offset by the substantial equity cushion protecting investors in the fund's senior securities, the agency said.

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