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TEXT-Fitch rates KKR Financial unsecured notes 'BBB'
March 14, 2012 / 5:28 PM / 6 years ago

TEXT-Fitch rates KKR Financial unsecured notes 'BBB'

March 14 - Fitch Ratings has assigned a rating of 'BBB' to KKR
Financial Holdings LLC's (KFN) $100 million unsecured note issuance due
2042 with a coupon of 7.5%. Proceeds are expected to be used for general
corporate purposes, including investment capital.	
	
KFN's leverage, as measured by total recourse holding company debt divided by
equity, was 0.50 times (x) at Dec. 31, 2011. Adjusting for this issuance, pro
forma leverage would increase to 0.56x. However, KFN has cash on hand to repay
$135.1 million of convertible notes coming due in July 2012, which would reduce
pro forma leverage to 0.48x. Fitch expects holding company leverage to remain in
the 0.5x-1.0x range longer term.	
	
Fitch currently rates KKR Financial Holdings LLC as follows:	
	
-- Long-term Issuer Default Rating (IDR) 'BBB';	
-- Senior unsecured notes 'BBB'.	
	
The Rating Outlook is Stable.	
	
Additional information is available at 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.	
	
Applicable Criteria and Related Research:	
-- 'Global Financial Institutions Criteria' (Aug. 16. 2011); and -- 'Investment
Manager and Alternative Funds Criteria' (Dec. 23, 2011).	
	
Applicable Criteria and Related Research:	
Investment Manager and Alternative Funds Criteria	
Global Financial Institutions Rating Criteria

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