Moody’s assigns KKR Real Estate Ba3, loan Ba2

Moody’s Investors Service said it assigned a first-time Ba3 corporate family rating to KKR Real Estate Finance Trust Inc. and a backed Ba2 rating to the company’s senior secured term loan B, issued by subsidiary KREF Holdings X LLC.

“KREF’s Ba3 corporate family rating reflects the company’s history of profitable operating performance, the high-quality composition of its lending portfolio, its effective liquidity and capital management and the strength of its competitive positioning resulting from its affiliation with KKR & Co. Inc. (KKR),” Moody’s said in a press release.

The Ba2 assigned to the term loan reflects the loan’s senior secured position in the company’s overall capital structure, the guarantees provided by the immediate parent holding company and certain affiliates, as well as the collateral pledge of equity interests in certain asset-owning subsidiaries and other assets, Moody’s said.

The outlook for both entities is stable. The outlook mirrors the strength of the company’s portfolio and its manageable exposure to mark-to-credit provisions in its funding position, the agency said.

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