DBRS rates Element BBB

DBRS said it assigned an issuer rating of BBB to Element Financial Corp., along with a short-term instruments rating of R-2 (middle) and a rating of Pfd-3 on its perpetual preferred shares.

The trend is stable.

The ratings reflect the company’s strengthening franchise, which is anchored by Element’s leading position in North American fleet management and a growing presence in railcar leasing, DBRS said.

The ratings also consider the company’s better-than-average credit risk profile, along with its developing and strengthening earnings profile, the agency said.

These factors are offset by the company’s reliance on secured funding sources, its appetite for growth through acquisitions and the integration and execution risks present in the recent acquisition of GE Capital’s fleet management business, DBRS said.

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