DBRS: EnerCare trend negative

DBRS said it confirmed the A (low) rating assigned to EnerCare Solutions Inc.'s senior notes but changed the trend to negative from stable.

The trend change reflects the agency's concern that the continued challenging water heater rental market environment may cause the company's credit risk profile to deteriorate to a level that is no longer consistent with the current rating category.

DBRS acknowledges that the credit metrics of EnerCare Solutions remained stable in 2011, and liquidity is viewed as adequate for the refinancing of C$60 million of long-term debt due in April. The agency assumes that the company will largely use cash to repay this debt.

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