Fitch rates KKR Group notes A

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

The outlook is stable.

Fitch also said it expects to assign an A rating to KKR Group Finance's unsecured debt issuance.

The proceeds from the proposed issuance are expected to be used for general corporate purposes, including the refinancing of $500 million of 6 3/8% of unsecured debt due in 2020.

The rating assigned to KKR Group Finance is equalized with that of KKR, given the joint and several guarantees on indebtedness from KKR and the other operating entities that collect all the revenue for the company, Fitch 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, the agency said.

The ratings reflect KKR's sizable balance sheet portfolio, Fitch said.

The ratings also consider an expectation that cash flow leverage may remain higher than the peer average, the agency said.

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

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