S&P trims EnerCare view to negative

Standard & Poor’s said it revised its outlook on EnerCare Inc. and subsidiary EnerCare Solutions Inc. to negative from stable after the company announced its C$550 million acquisition of Direct Energy Marketing Ltd.’s Ontario Home Services business.

At the same time, S&P affirmed its ratings on EnerCare, including its BBB+ long-term corporate credit rating on the company.

“The outlook revision stems from our view that the acquisition will increase EnerCare’s debt leverage modestly in the next year, while the company faces ongoing pressure for shareholder returns that could result in higher debt leverage,” said S&P credit analyst Donald Marleau in a news release.

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