NEW YORK--(BUSINESS WIRE)--Element Financial Corporation (TSX: EFN, “Element”, or “the Company”) has announced that the Company will divide its business segments among two publicly traded companies listed on the TSX: Element Fleet Management, comprising $19.5 billion in assets, and Element Commercial Asset Management, comprising $7.0 billion in assets.
Kroll Bond Rating Agency (KBRA) views the overall impact of the split of the businesses as credit positive for EFN, which will be the publicly listed entity housing Element Fleet Management. In KBRA’s view, the Company’s core fleet management and rail businesses have a relatively lower risk profile than the combined current company, with stronger credit metrics overall. Moreover, Element Fleet Management will disengage from C&V operations, which KBRA view as higher risk. In November of 2015, KBRA affirmed the issuer and senior unsecured debt ratings of BBB+, with stable outlooks, for Element Financial Corporation. The ratings are based on KBRA’s Finance Company Rating Methodology, published on April 1, 2013.
The full release can be viewed at: https://www.krollbondratings.com/show_report/3767
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KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).