{"id":33391,"date":"2016-07-21T23:30:42","date_gmt":"2016-07-22T04:30:42","guid":{"rendered":"http:\/\/prefblog.com\/?p=33391"},"modified":"2016-07-21T23:30:42","modified_gmt":"2016-07-22T04:30:42","slug":"ron-pr-a-ron-pr-b-upgraded-to-p-2-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33391","title":{"rendered":"RON.PR.A, RON.PR.B Upgraded to P-2 by S&amp;P"},"content":{"rendered":"<p>Standard &#038; Poor&#8217;s <a href=\"https:\/\/www.standardandpoors.com\/en_US\/web\/guest\/article\/-\/view\/type\/HTML\/id\/1678764\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022Boucherville, Que.-based RONA Inc. recently announced that Lowe&#8217;s Cos. Inc. (A-\/Stable\/A-2) has provided guarantees of the obligations under RONA&#8217;s preferred shares and debentures outstanding.\n<li>\u2022As a result, we are raising our issue-level rating on RONA&#8217;s senior unsecured notes to &#8216;A-&#8216; from &#8216;BBB+&#8217; and our global scale rating on the company&#8217;s preferred shares to &#8216;BBB&#8217; from &#8216;BBB-&#8216;.\n<li>\u2022At the same time, we are affirming our &#8216;BBB+&#8217; long-term corporate credit rating on RONA.\n<li>\u2022The stable outlook on RONA reflects our stable outlook on Lowe&#8217;s and our expectation that over our two-year outlook horizon, RONA&#8217;s stand-alone business and financial risk profiles should be unchanged.<\/ul>\n<p><b>&#8230;<\/b><br \/>RONA recently announced that Lowe&#8217;s Cos. Inc. (A-\/Stable\/A-2) has guaranteed RONA&#8217;s preferred shares outstanding as well as the company&#8217;s 5.4% debentures due Oct. 20, 2016.<\/p>\n<p>&#8220;We base the upgrade on Lowe&#8217;s guarantee of RONA&#8217;s preferred shares and debentures outstanding,&#8221; said S&#038;P Global Ratings credit analyst Alessio Di Francesco.<\/p>\n<p>In our opinion, this guarantee has enhanced the credit profile of these issues resulting in a one-notch upgrade. Our rating on RONA&#8217;s senior unsecured debentures is now equalized with our &#8216;A-&#8216; issue-level rating on Lowe&#8217;s senior unsecured notes. Our &#8216;BBB&#8217; global scale rating on RONA&#8217;s preferred shares is two notches below our long-term corporate credit rating on Lowe&#8217;s (guarantor). The notching incorporates our view that the preferred shares have an optional deferral feature and are subordinated to Lowe&#8217;s debt outstanding.<\/p><\/blockquote>\n<p>The <a href=\"http:\/\/prefblog.com\/?p=33362\">guarantee by Lowe&#8217;s<\/a> has been previously reported on PrefBlog. <a href=\"http:\/\/prefblog.com\/?p=33317\">DBRS has discontinued its rating of RONA<\/a>, so the S&#038;P rating is the only one available. S&#038;P <a href=\"http:\/\/prefblog.com\/?p=33142\">previously rated the issues P-2(low)<\/a> following the <a href=\"http:\/\/prefblog.com\/?p=33044\">closing of the takeover via Plan of Arrangement on May 20<\/a>. RONA&#8217;s preferred shareholders <a href=\"http:\/\/prefblog.com\/?p=32849\">turned down a $20 cash offer<\/a> that was part of the plan. Since March 31, the TXPR total return index has returned +5.42%, while RON.PR.A is up 3.75% from the $20 offer.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Standard &#038; Poor&#8217;s has announced: \u2022Boucherville, Que.-based RONA Inc. recently announced that Lowe&#8217;s Cos. Inc. (A-\/Stable\/A-2) has provided guarantees of the obligations under RONA&#8217;s preferred shares and debentures outstanding. \u2022As a result, we are raising &hellip;<\/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-33391","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33391","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=33391"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33391\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33391"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33391"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33391"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}