{"id":13508,"date":"2010-12-23T21:18:16","date_gmt":"2010-12-24T01:18:16","guid":{"rendered":"http:\/\/www.prefblog.com\/?p=13508"},"modified":"2010-12-23T21:18:16","modified_gmt":"2010-12-24T01:18:16","slug":"ksp-un-sp-no-longer-rates-underlying-interest","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=13508","title":{"rendered":"KSP.UN: S&P No Longer Rates Underlying Interest"},"content":{"rendered":"

Standard & Poor’s has announced<\/a>:<\/p>\n

it affirmed its ‘CCC-‘ unsolicited long-term counterparty credit ratings and negative outlook on Kingsway Financial Services Inc. and its subsidiaries (Kingsway). Subsequently, we withdrew the unsolicited ratings.<\/p>\n

“Our ratings on Kingsway Financial Services and its subsidiaries were based on the group’s weak operating performance, liquidity, capital adequacy, competitive position, and financial flexibility,” said Standard & Poor’s credit analyst Pablo Feldman.<\/p>\n

Kingsway reduced its outstanding senior unsecured debt rated by Standard & Poor’s and held by third parties to about $36.9 million as of Sept. 30, 2010, from $176.8 million at year-end 2009. Kingsway financed this debt reduction with cash obtained from the sale of some of its subsidiaries and assets. “Because the company now has only a small amount of outstanding rated senior unsecured debt, we are withdrawing our unsolicited ratings,” said Mr. Feldman.<\/p>\n

The negative outlook reflected our assessment of the company’s operating performance, liquidity, capital adequacy, competitive position, and financial flexibility as weak. We believe that the company has a high level of financial leverage and that its operating companies face a difficult underwriting environment. We also believe that Kingsway Financial Services is highly dependent upon favorable business, financial, and economic conditions to meet its financial obligations.<\/p><\/blockquote>\n

One of those financial obligations involves the future health of Kingsway Linked Return of Capital Trust, trading as KSP.UN and sponsored by Scotia Managed Companies<\/a>:<\/p>\n

The Trust was created to provide holders with exposure to a senior note issued by an affiliate of Kingsway Financial Services Inc. Holders of the LROC Preferred Units will receive primarily tax-deferred quarterly distributions of $0.3125 per LROC Preferred Unit representing a yield of 5.00% per annum on the $25.00 per LROC Preferred Unit offering price.<\/p><\/blockquote>\n

KSP.UN was last mentioned on PrefBlog when DBRS withdrew its rating last year<\/a>. KSP.UN is not tracked by HIMIPref™.<\/p>\n","protected":false},"excerpt":{"rendered":"

Standard & Poor’s has announced: it affirmed its ‘CCC-‘ unsolicited long-term counterparty credit ratings and negative outlook on Kingsway Financial Services Inc. and its subsidiaries (Kingsway). Subsequently, we withdrew the unsolicited ratings. “Our ratings on …<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-13508","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13508"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/13508\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}