DBRS Releases Reports on Power Corporation and Power Financial

DBRS has today released reports that confirm all ratings on Power Corporation of Canada (POW) and Power Financial Corporation (PWF). The trends remain stable.

The senior debt rating for POW is A (high). The credit strength of POW is tied directly to its 66.1% equity interest in PWF, which represents a substantial majority of POW’s earnings and cash flow, as well as 84% of its estimated net asset value as of June 30, 2011.

The senior debt and preferred shares ratings for PWF are AA (low) and Pfd-1 (low), respectively. The financial strength of PWF is largely derived from its controlling interests in two of Canada’s leading financial service providers: Great-West Lifeco Inc., one of the three largest life insurance concerns in Canada, and IGM Financial Inc., the largest mutual fund complex in Canada as measured by long-term assets under management on June 30, 2011. These two holdings provide PWF with stable recurring earnings and dividends while providing it with diversification by product, distribution channels and geography – even through the depths of the financial crisis. Both of these subsidiaries, in turn, benefit from PWF’s hands-on governance, strategic oversight and risk-averse culture.

Notes:
Today’s reports and the October 24, 2011, press releases are available at www.dbrs.com or by contacting us at info@dbrs.com.