Fitch applies BBB- to Kimco preferreds

Fitch Ratings said it assigned BBB- ratings to the perpetual preferred stock issued by Kimco Realty Corp.

Net proceeds are expected to be used to redeem outstanding series of higher cost preferred stock and potentially repay other existing corporate debt.

Fitch said the ratings reflect Kimco's large, diversified portfolio and its strong access to capital. The company had made progress reducing its leverage following the Kimstone transaction, targeting net debt to adjusted EBITDA (per its own calculations) of 5 times to 5.5 times.

However, leverage reached 6.3 times as of June 30, a result of draws on its revolver attributable to increased development spending and repayment of secured debt, the agency noted.

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