Fitch: Tortoise preferreds AA

Fitch Ratings said it assigned an AA rating to the mandatory redeemable preferred stock issued by Tortoise Energy Capital Corp., a closed-end fund managed by Tortoise Capital Advisors, LLC.

The issue is $50 million of 5% mandatory redeemable preferred shares, series B. The 5 million preferreds with a liquidation preference of $10 each are due on March 1, 2018.

The proceeds will be used to redeem in full $45 million of outstanding series A preferreds issued in December 2009, the agency said.

The main drivers of the rating are the asset coverage provided to the shares by the fund's assets, structural protections afforded by mandatory de-leveraging provisions in the event of asset coverage declines, the legal and regulatory parameters that govern the fund's operations and the capabilities of Tortoise as investment adviser, Fitch said.

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