DBRS ups Toromont

DBRS said it upgraded the senior debentures rating of Toromont Industries Ltd. to BBB (high) from BBB, with a stable trend, removing the rating from Under Review with positive implications, where it was placed on April 21.

The upgrade follows the closing of the transaction to spin off the company's compression business to Toromont shareholders, the agency said.

The company's new capital structure results in a very strong proforma financial profile, due to significantly lower debt levels, the agency added. The company's business profile will be strengthened as a result of the transaction, since Toromont will no longer be exposed to volatile natural gas markets, which should increase stability in its operating results.

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