KKR Financial says it has "ample liquidity"

Philadelphia, Aug 16: KKR Financial Holdings LLC said on Wednesday it believed it has ''ample liquidity'' to fund its core business and it will maintain a funding cushion during the current downturn in U.S. credit markets.

The firm, an affiliate of leveraged buyout firm Kohlberg Kravis Roberts&Co, said it had 2 million in liquidity that would allow it to meet ''any and all'' investment opportunities or business contingencies that may arise. The company said it was unlikely it would use its capital to repurchase stock, but it would maintain a ''very high'' dividend.

Earlier on Wednesday, KKR Financial said it would lose about million from selling .1 billion in residential mortgages and warned an additional 0 million hit could be coming. Its stock plunged 31 per cent to close at .52, down .75, on the New York Stock Exchange.

Reuters>