S&P gives Kimco preferreds BBB-

Standard & Poor's said it assigned its BBB- rating to the $175 million of 6.90% class H cumulative redeemable preferred stock issued by Kimco Realty Corp.

Kimco intends to use net proceeds from the offering to repay mortgage loans with an the aggregate principal amount of $150.1 million and interest rates of 6.75%-7.87% per annum and maturities from May 2011 to April 2013 and for general corporate purposes, the agency said.

By essentially replacing debt with preferred equity, Kimco will modestly improve its net debt-to-EBITDA measure to 6.1x from 6.4x, S&P added.

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