S&P upgrades RONA

S&P said it raised the rating on RONA Inc.'s senior unsecured notes to A- from BBB+ and global scale rating on the company's preferred shares to BBB from BBB-.

The agency also said it affirmed the company’s BBB+ long-term corporate credit rating.

The outlook is stable.

RONA recently announced that Lowe's Cos. Inc. has guaranteed RONA's preferred shares outstanding, as well as the company's 5.4% debentures due Oct. 20, 2016.

The upgrades reflect Lowe's guarantee, S&P said, it enhanced the credit profile of these issues.

The rating on the senior unsecured debentures is now equalized with the A- issue-level rating on Lowe's senior unsecured notes, S&P explained.

The stable outlook reflects the stable outlook on Lowe's, the agency added.

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