S&P rates Power Financial preferreds A-

Standard & Poor's said it assigned its P-1(Low) Canada scale and A- global scale preferred stock ratings to Power Financial Corp.'s proposed C$200 million series T noncumulative preferred shares.

S&P said it expects Power Financial will maintain its consolidated financial leverage ratio at about 40% and its fixed-charge coverage ratio at 6x or better. Parent company Power Corp. of Canada's financial leverage ratio is about 42%. Although this is slightly high, S&P said it expects it will trend downward as the group's capital base grows.

Partially offsetting this leverage are the significant cash resources that both companies hold.

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