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DBRS confirms ECN Capital after strategic investment announcement


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DBRS confirms ECN Capital after strategic investment announcement

DBRS Inc. has confirmed the BBB (low) long-term issuer rating of ECN Capital Corp.

The trend on the rating is stable.

The confirmation follows the company's announcement that it has agreed to make a strategic investment in the Kessler Group for roughly $221.2 million in cash. The transaction is subject to customary closing conditions and is expected to close in the second quarter.

The rating agency considered the benefits to ECN Capital's franchise, earnings and risk profile that are expected from the strategic investment in deciding to confirm the company's rating.

The agency sees the strategic investment in Kessler as strengthening the overall ECN Capital franchise through its business in a niche market. Additionally, the acquisition of Kessler will provide revenue diversification and support earnings growth, DBRS added.