Fitch rates KKR notes BBB+

Fitch Ratings said it plans to assign a subordinated debt rating of BBB+ to the proposed junior subordinated notes issued by KKR Finance Co. IX LLC. The amount, coupon and final maturity will be determined at the time of issuance.

The agency also gave a long-term issuer default rating of A to KKR Group Finance Co. IX, an indirect, debt-issuing subsidiary of KKR & Co. Inc.

Fitch also downgraded KKR's mandatory convertible preferred stock and preferred stock to BBB from BBB+.

The notes will rank junior to current and future senior unsecured notes issued by KKR and subsidiaries and senior to mandatory convertible preferred stock and preferred stock. The notes will also allow for cumulative deferral of interest payments for up to five consecutive years, the agency said.

Proceeds are expected to be used to redeem KKR's outstanding series A and series B preferred stock, with any remaining proceeds expected to be used for general corporate purposes.

The outlook is stable.

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