KBRA Assigns Rating to FS KKR Capital Corp.'s $900 Million Senior Unsecured Notes Due 2031

KBRA Assigns Rating to FS KKR Capital Corp.'s $900 Million Senior Unsecured Notes Due 2031

KBRA assigns a rating of BBB- to FS KKR Capital Corp.'s (NYSE: FSK) ("the company") $900 million 7.50% senior unsecured notes due 2031. The rating Outlook is Stable. Proceeds will be used for general corporate purposes with the potentiality of repaying outstanding secured indebtedness.

Key Credit Considerations

The rating is supported by FSK’s affiliation with KKR & Co.’s (“KKR”) approximately $758 billion platform, including its large and established $293 billion AUM credit business, which provides significant benefits in sourcing, underwriting, restructuring capabilities, and capital markets access. In 2Q26, KKR announced several shareholder support measures for FSK, including a planned $150 million tender offer for common shares and a $150 million convertible preferred equity investment.

FSK also maintains a diversified funding profile, including unsecured debt, bank facilities, and CLOs, with a meaningful proportion of unsecured funding that enhances financial flexibility. As of March 31, 2026, FSK had solid liquidity, including $2.6 billion in available bank lines and $129 million in cash, offset by $900 million in unsecured debt maturing within two years ($400 million in January 2027, $500 million in July 2027) and $1.8 billion in unfunded portfolio commitments, most of which are not expected to be drawn.