Fitch to rate KKR preferreds BBB+

Fitch Ratings said it expects to rate KKR & Co. LP's series B perpetual preferred securities BBB+.

The preferred securities are expected to be subordinated to existing unsecured debt, rank equally with existing preferred securities, but be senior to common units.

Proceeds are expected to be used for general corporate purposes, including to fund acquisitions and investments.

The instrument is expected to be rated two notches lower than KKR's long-term issuer default rating in accordance with Fitch's “Treatment and Notching of Hybrids in Non-Financial Corporate and REIT Credit Analysis” (November 2014).

The preferred stock rating includes two notches for loss severity, reflecting its subordination and heightened risk of non-performance relative to other obligations, namely existing unsecured debt, the agency said.

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