DBRS confirms ECN Capital

DBRS said it confirmed the BBB (low) long-term issuer rating and Pfd-3 (low) preferred shares rating of ECN Capital Corp. following the company’s announcement that it has entered into an agreement to sell its Canadian commercial and vendor business to Canadian Western Bank for cash proceeds of about C$900 million.

The trend is stable.

The agency said the confirmation considers that while diversification of earnings will be impacted, the overall impact to earnings is expected to be manageable given that the recently acquired businesses (Service Finance Co. and Triad Financial, Inc.) are both expected to be accretive to 2018 earnings.

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