DBRS: ECN Capital preferreds Pfd-3 (low)

DBRS said it assigned a rating of Pfd-3 (low) to the C$100 million 6.25% cumulative five-year minimum-rate reset preferred shares, series C issued by ECN Capital Corp.

The trend is stable.

Proceeds are expected to be used to originate and finance, directly and indirectly, finance assets, to fund future acquisitions and for general corporate purposes.

DBRS said the rating reflects the company’s solid franchise as a leading commercial lender and lessor in North America with strong origination platforms and sound risk management across multiple asset classes.

The rating also considers the solid earnings generation derived from the franchise, producing more than sufficient pre-provision earnings to absorb the cost of credit with a solid cushion to absorb potentially higher losses that would be expected through the cycle, as well as unexpected losses.

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