TEXT-S&P: EnerCare Inc rating unchanged on notes issue
Nov 16 - Standard & Poor's Ratings Services today said that its ratings on EnerCare Inc. and subsidiary EnerCare Solutions Inc. (both rated A-/Stable/--) are unchanged after the company issued C$250 million senior unsecured notes due 2017 to refinance its upcoming C$240 million maturity. The new notes are also rated 'A-'. The ratings on EnerCare reflect our view of the company's strong business risk profile, characterized by the well-established position of its portfolio of rental water heaters, and an intermediate financial profile with moderate debt leverage. We believe that recent debt reduction and lower leverage are important support for the rating, considering the shift in EnerCare's business mix and pressure for shareholder returns. We base the stable outlook on our expectation that steady cash flow from water heater rentals will support the growth of EnerCare's submetering business, while maintaining fully adjusted debt to EBITDA of about 3x.
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