S&P rates IGM Financial notes A

S&P said it assigned an A issue rating to IGM Financial Inc.'s proposed issuance of C$250 million in senior unsecured debentures due in 2050.

The long-term issuer credit rating is A, the agency said, and the outlook is stable.

The agency said it anticipates that management will use the majority of the proceeds to pay down the existing C$150 million preferred shares and use the remaining balance for other general corporate purposes.

S&P said it expects that, despite a modest increase in leverage, IGM will operate with debt-to-adjusted EBITDA close to or slightly higher than 1.5x during the next 12- to 24-months, comfortably below the 2x downside trigger.

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