S&P gives Power Financial preferreds A-

S&P said it assigned an A- debt rating and P-1 (Low) Canada scale rating to Power Financial Corp.'s issuance of noncumulative perpetual preferred stock.

The company intends to use the net proceeds for general corporate purposes.

The agency said it considers these shares to be intermediate equity-credit hybrids due to the deferability of dividends, as well as the expectation that they will be a permanent part of Power's capital structure. Power's financial leverage and fixed-charge coverage remain supportive of the ratings.

S&P estimates pro-forma financial leverage will remain less than 35% with EBITDA fixed-charge coverage between 6 times and 6.5 times.

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