DBRS puts ECN under review negative

DBRS said it placed the ratings of ECN Capital Corp., including its long-term issuer rating of BBB (low), under review with negative implications.

The ratings action follows ECN’s Tuesday announcement that it agreed to sell its Service Finance Co., LLC business to Truist Bank, the wholly owned bank subsidiary of Truist Financial Corp., DBRS said.

“The under review with negative implications considers the impact of the sale of ECN’s Service Finance business on its credit fundamentals, including a reduction in earnings generation capacity and growth potential. Partially offsetting, is the continuing solid contributions to ECN’s bottom line from its Triad Financial Services, Inc. (Triad) and Kessler Financial Services LLC (Kessler) businesses, despite ongoing headwinds related to the coronavirus disease (Covid -19) pandemic,” the agency said in a press release.

DBRS said it generally finishes the reviews within three months and anticipates cutting ECN’s ratings by a notch.

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