DBRS Assigns Rating of BBB (high) to EnerCare Solutions Inc., Stable Trend

DBRS has today assigned an Issuer Rating of BBB (high) with a Stable trend to EnerCare Solutions Inc. (EnerCare). For more information, please see the press release “DBRS Assigns New Issuer Ratings,” dated September 14, 2012.

DBRS’s rating on EnerCare Solutions Inc. is based on the DBRS methodology Rating Companies in the Consumer Products Industry. However, DBRS views EnerCare’s strong franchise as having a superior business risk profile than that of a traditional consumer products company, and as a result, the Company is able to manage higher leverage metrics.

Overall, in DBRS’s assessment of the credit quality of EnerCare, DBRS factors in the following key items: (1) competition arising from regulatory changes; (2) effects of attrition on customer base; (3) stability of cash flow generated from customer base; (4) flexibility to increase rental rates; (5) limited operational risk through a co-ownership agreement; and (6) dependency on new home developments for growth.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The applicable methodology is Rating Companies in the Consumer Products Industry, which can be found on our web site under Methodologies.