DBRS lowers EnerCare

DBRS said it downgraded the senior notes of EnerCare Solutions Inc. to BBB (high) from A (low).

The agency also revised its trend to stable from negative.

The downgrade is predominantly driven by the structural change in the continued challenging water heater rental market environment, DBRS said.

The rising competition has ultimately weakened EnerCare's business profile materially, the agency said.

DBRS said it is concerned that this development will add to the company's existing challenges in its efforts to reduce its attrition rate back to the historical level of 2% to 3% that was prevalent during periods of low competition.

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