Fitch rates KKR Group A

Fitch Ratings said it assigned a long-term issuer default rating of A to KKR Group Finance Co. V LLC, an indirect subsidiary of KKR & Co. Inc.

The outlook is stable.

Fitch also said it expects to assign an unsecured debt rating of A to the proposed €650 million 1.625% senior unsecured notes issued by KKR Group Finance Co. V LLC that matures in 10 years.

The proceeds will be used for general corporate purposes, including funding potential investment opportunities and acquisitions in Europe, the agency said.

The rating on the proposed unsecured notes is equalized with KKR's existing unsecured debt as the issuance will rank equally in the capital structure, Fitch noted.

Given KKR's sizable balance sheet portfolio, the agency said it assesses the company's leverage profile on both a balance sheet and cash flow basis.

While KKR's debt-to-tangible equity will increase modestly, Fitch said it expects it to remain low on an absolute basis and relative to the peer group.

Debt service capacity is at the lower end of the peer group and lower than the A category coverage benchmark range of 8x to 12x, which is somewhat mitigated by KKR's strong liquidity position, the agency said.

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