Fitch rates KKR Group notes A

Fitch Ratings said it assigned an A rating to the $500 million 3.75% senior unsecured notes due July 1, 2029 issued by KKR Group Finance Co. VI LLC, an indirect subsidiary of KKR & Co. Inc.

The debt rating is equalized with KKR's long-term issuer default rating, reflecting its fully unsecured funding profile, Fitch said.

The rating also reflects that the notes rank equally with existing and future senior unsecured notes issued by KKR, the agency noted, and joint and several guarantees by KKR and the intermediate holding companies.

The debt issuance is expected to be leverage neutral, given that proceeds will be used for the refinancing of $500 million of 6.375% of unsecured debt maturing in 2020, Moody's said.

The unsecured debt rating is linked to the long-term issuer default rating and is expected to move in tandem, the agency said.

However, a meaningful decline in the amount of unsecured debt in the capital structure, in favor of secured borrowings, could result in the unsecured debt rating being notched down from the long-term issuer default rating, Moody's said.

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