DBRS puts EnerCare under review

DBRS said it placed EnerCare Solutions Inc.’s issuer rating and senior notes under review with developing implications.

This rating action follows the announcement that EnerCare agreed to purchase the Ontario home and small commercial services (OHCS) business from Direct Energy Marketing Ltd. (DE) for about C$550 million.

The acquisition is expected to close in the fourth quarter of 2014, pending regulatory approvals and will be funded through the issuance of C$410 million of equity and C$223 million of debt.

Once the financing for the acquisition is put in place, the ratings will likely be removed from under review with developing implications. However, any significant deviations could result in negative rating actions, DBRS said.

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