The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from Marketwire

EnerCare Inc. and EnerCare Solutions Inc. Provide Ratings Update

Wednesday, September 12, 2012

EnerCare Inc. and EnerCare Solutions Inc. Provide Ratings Update14:36 EDT Wednesday, September 12, 2012TORONTO, ONTARIO--(Marketwire - Sept. 12, 2012) - EnerCare Inc. ("EnerCare") (TSX:ECI) and its wholly-owned subsidiary, EnerCare Solutions Inc. ("EnerCare Solutions"), report that DBRS Limited ("DBRS") has changed its ratings on EnerCare Solutions' outstanding senior notes from "A(low)" with a negative outlook, to "BBB(high)" with a stable outlook. According to DBRS, the rating change is predominantly driven by EnerCare Solutions' attrition levels and the continuing competitive challenges faced by EnerCare Solutions. The rating assumes that EnerCare Solutions' attrition rate will decrease gradually and its customer base will stabilize as a result of a number of initiatives to defend EnerCare Solutions' market position. DBRS noted that EnerCare Solutions' key credit metrics remained stable for the six months ended June 30, 2012, as increased rental rates and higher margin products entering the portfolio largely offset the decrease in earnings from the smaller customer base.EnerCare Solutions' outstanding senior notes continue to be rated "A-" with a stable outlook by Standard & Poor's Rating Services, as do both EnerCare and EnerCare Solutions."While we agree with DBRS that, although our credit metrics remain stable, our attrition levels are higher than we would like, we think DBRS is taking too short a view," said John Macdonald, President and CEO of EnerCare. As reported in second quarter results, buyouts decreased dramatically in each month subsequent to April and unit losses not attributed to buyouts were lower than such losses in the second quarter of 2011 by approximately 8%. "We have seen that positive trend continue in July and August as we fight an increasingly successful battle against attrition," continued Mr. Macdonald.About EnerCare Inc. and EnerCare Solutions Inc.EnerCare and EnerCare Solutions own a portfolio of approximately 1.2 million installed water heaters and other assets, rented primarily to residential customers in Ontario. EnerCare also owns EnerCare Connections Inc., a leading sub-metering company, with metering contracts for condominium and apartment suites in Ontario, Alberta and elsewhere in Canada.Additional information regarding EnerCare and EnerCare Solutions is available on SEDAR at www.sedar.com or through EnerCare's website at http://investors.enercare.ca. Information on the sub-metering business is also available at www.enercareconnections.com.FOR FURTHER INFORMATION PLEASE CONTACT: Evelyn SutherlandEnerCare Inc. and EnerCare Solutions Inc.CFO416.649.1860esutherland@enercare.cawww.enercareconnections.com