DBRS confirms Industrial Alliance; trend negative

DBRS said it confirmed the ratings on Industrial Alliance Insurance and Financial Services Inc. and its affiliate, Industrial Alliance Capital Trust, but has assigned a negative trend.

The trend on the company's claims paying ability rating remains stable.

DBRS said that the debt and preferred shares ratings have been removed from under review with negative implications, where they were placed on June 15.

The negative trend reflects the reduced financial flexibility as it has continued to shore up its regulatory capital ratios through the issuance of additional preferred shares, taking its total debt-to-capitalization ratio to 37.8%, which is above the ratio expected by DBRS for an A rated company in the Canadian life insurance industry.

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