S&P rates Power Corp. of Canada notes A

S&P said it assigned an A rating to Power Corp. of Canada's issuance of unsecured debentures.

The 30-year debt is primarily intended to support the acquisition of an additional 3.9% equity interest in China Asset Management Co., Ltd., as well as for general corporate purposes, the agency said.

The debt ranks pari passu with all other current and future unsecured and unsubordinated debt of the company, S&P said.

The base case expectation for Power Corp.'s leverage is less than 40% with fixed-charge coverage of more than 6.5x, the agency said.

The additional stake in China Asset Management does not affect Power Corp.'s ratings due to the immaterial size relative to the company, S&P said.

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