DBRS Discontinues ELF Rating

DBRS has announced that it:

has today announced that it will discontinue its public rating on the First Preference Shares, Series 1 of E-L Financial Corporation Limited (E-L) on October 20, 2010 (30 days from today).

DBRS notes that this action is unrelated to E-L’s credit profile.

ELF has two issues of preferreds outstanding, both PerpetualDiscounts: ELF.PR.F & ELF.PR.G. The issues have been rated Pfd-2(low) by DBRS for a long time, contrasted with S&P’s ratings of P-2(high)/BBB+.

I don’t see any other news – and remember, ELF is probably the largest public company in Canada, if not North America, that doesn’t have a website – so it’s hard to guess what this might mean. It could be a signal that a new issue is on its way and ELF didn’t feel like cutting more cheques to DBRS.

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