Moody's cuts Kennedy-Wilson

Moody's Investors Service said it downgraded the senior unsecured and corporate family ratings of Kennedy-Wilson, Inc. to B2 from B1. The outlook remains stable.

The agency said the ratings downgrade reflects key financial ratios for Kennedy-Wilson, including fixed charge coverage and leverage commensurate with a B2 rating.

Over the past 18 months the company's rapid growth has been heavily reliant on off-balance sheet activities, Moody's said. The company's assets have grown from $488 million at December 31, 2010 to $807 million at June 30, 2012, a 65% increase. In this same period, trailing-twelve month fixed charge coverage has declined from 1.7X to 1X and leverage has increased from 5.3X to 7.8X.

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