DBRS: Industrial Alliance preferreds on watch

DBRS said it placed the subordinated debt and preferred shares ratings of Industrial Alliance Insurance and Financial Services Inc. under review with negative implications.

Following the DBRS annual review meetings with Industrial Alliance management and certain disclosures included in Industrial Alliance's Investor Day presentation, DBRS said that it remains concerned that the exposure to the current low interest rate environment has impaired its financial flexibility at the current rating categories.

Industrial Alliance's total debt ratio has increased to 36.6% pro forma the $150 million preferred share issue completed in May, which is above the range established by the DBRS rating methodology for the life insurance industry at the current rating category.

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