Once these most recent quarterly results are finalized, they will be run through TheStreet.com Ratings' model and our ratings will be adjusted accordingly. To keep up to date on all of our ratings, visit TheStreet.com Ratings Screener.

On March 2, 2009,

KKR Financial Holdings LLC


reported that it fell to a net loss in Q4 FY08, hurt by a higher provision for loan-losses, impairment charges, and losses on sale of assets amid the weak global economy. Net loss stood at $1.18 billion, or $7.85 per share, compared to a profit of $59.91 million, or $0.52 per share, in the prior year's quarter.

Total investment income for the fourth quarter plunged 22.4% to $227.87 million from $293.61 million in Q4 FY07 due to lower interest income across sources. Securities interest income dipped 8.4% to $36.76 million from $40.14 million, while loan interest income dropped 19.6% to $188.67 million from $234.76 million. In addition, other interest income dropped 88.2% to $2.08 million from $17.61 million in the year-ago quarter. Finally, dividend income decreased 67.1% to $363,000 from $1.10 million. Total interest expense fell 31.0% year-over-year to $121.11 million. Provision for loan losses stood at $417.49 million. Subsequently, net investment loss stood at $341.71 million against an income of $86.62 million a year earlier.

During Q4 FY08, KFN reported a net realized and unrealized loss on residential mortgage-backed securities and mortgage loans of $34.25 million; and loss of $745.50 million on investments. The company also recorded a net realized and unrealized loss on derivatives and foreign exchange of $72.85 million and a $6.21 million gain on extinguishment of debt. Consequently, KFN registered total other loss of $815.58 million. Total non-investment expenses fell 13.7% to $18.30 million due to lower management compensation expenses.

For FY08, total investment income increased 8.7% to $948.59 million from $872.37 million in the previous year. Net loss for the year widened to $1.08 billion, or $7.68 per share, from $100.21 million, or $1.11 per share, in FY07.