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DBRS cuts ECN Capital
DBRS said it downgraded ECN Capital Corp., including the long-term issuer rating to BB (high) from BBB (low).
The downgrades follow the company’s sale of its Service Finance Co., LLC business to Truist Bank, the agency said. It also removed ECN’s ratings from under review with negative implications, where they were placed on Aug. 11.
“The ratings downgrade considers the impact of the sale of Service Finance on ECN’s credit fundamentals, including its franchise strength, and earnings generation. With the sale of Service Finance, the company’s scope of operations and product/services diversity has moderated, increasing ECN’s susceptibility to business and economic downturns. Additionally, the loss of Service Finance’s earning contributions reduces ECN’s earnings capacity, organic capital generation, and to a degree, the company’s ability to absorb unexpected future losses,” DBRS said in a press release.
The trend is stable.
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