Fitch rates Kimco notes BBB+

Fitch Ratings said it assigned a credit rating of BBB+ to Kimco Realty Corp.'s $500 million of 3.2% senior unsecured notes due 2021.

The proceeds will be used for general corporate purposes, including reducing borrowings under the revolving credit facility and to pre-fund certain near-term debt maturities, Fitch said.

Kimco Realty also has a issuer default rating of BBB+, unsecured revolving credit facility rating of BBB+, senior unsecured term loans rating of BBB+, senior unsecured notes rating of BBB+ and preferred stock rating of BBB-.

Kimco North Trust III has an issuer default rating of BBB+ and senior unsecured notes rating of BBB+.

KRC Lending SA de CV Sofom ENR has an issuer default rating of BBB+ and senior unsecured term loan rating of BBB+.

The outlook is stable.

The ratings reflect Kimco's appropriate leverage and fixed-charge coverage metrics, solid track record owning a large and diversified pool of community and neighborhood shopping centers, experienced leasing and management team and high-quality, diversified tenant mix, Fitch said.

The ratings also factor in the company's track record of accessing a wide variety of capital sources and the long-term benefits of its ongoing portfolio simplification strategy, the agency said.

These positive rating elements are balanced by slightly low unencumbered asset coverage of unsecured debt for the rating category and a U.S. retailer environment, where market share defensibility remains a key challenge for many traditional retailers, Fitch said.

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