KBRA Assigns and Affirms Ratings on Senior Notes and MRPS Issued by Kayne Anderson Energy Infrastructure Fund, Inc.
KBRA assigns a ‘AAA’ rating to $25.0 million Series CCC Senior Notes and $25.0 million Series DDD Senior Notes, and assigns an ‘A+’ rating to $15.0 Series Y Mandatory Redeemable Preferred Stock ("MRPS") issued by Kayne Anderson Energy Infrastructure Fund, Inc. (the “Fund”). Concurrently, KBRA affirms the ratings assigned to the outstanding Senior Notes and MRPS issued by the Fund. The outlook on all ratings is Stable.
The ratings continue to be supported by strong asset coverage, the liquidity of the underlying assets, and the management experience of the Fund's investment adviser, KA Fund Advisors, LLC (“KAFA”). As of June 30, 2026, senior asset coverage was 633% and total asset coverage was 492%. The Fund is registered under the Investment Company Act of 1940 and is a non-diversified closed-end investment fund. The Fund commenced operations on September 28, 2004, and its shares are listed on the New York Stock Exchange under the symbol KYN. The Fund’s investment strategy focuses on equity securities of energy infrastructure companies.
Key Credit Considerations
Asset Coverage: The Fund is registered under the ’40 Act which imposes minimum asset coverage requirements on leverage. The Fund must maintain at least 200% coverage on total leverage (including senior debt and preferred shares) and 300% on senior debt in order to issue additional debt or preferred shares and pay dividends. The Fund manager has communicated to KBRA that KYN has a current internal target of a 55%-60% cushion relative to its financial covenants (i.e. market values could decline by approximately this amount before asset coverage ratios would be equal to financial covenants). Under the terms of the Fund's leverage agreements, asset coverage must be calculated on a weekly basis.
