Kingsway notes receive ‘BBB-‘ rating

Standard & Poor’s recently placed a “BBB-” rating on Kingsway ROC GP’s $125 million, 10-year senior unsecured debt.
The notes for Kingsway ROC GP a new general partnership organized under the laws of Delaware and owned by a subsidiary of Kingsway (the guarantor) will be placed into the Kingsway Note Trust as referenced in the Kingsway Linked Return of Capital Trust, preliminary prospectus, according to S&P.
Funds generated will pay some bank facilities and the balance will be forwarded into select operating companies.
S&P credit analyst Kevin Maher says with the new debt, Kingsway has developed a financial cushion to aid the Company prior to its limit for the current ratings band. “We consider the $125 million issue to slightly increase Kingsway’s debt leverage, although not significantly,” Maher says. S&P reports an expected 8%-10% growth for Kingsway instigated in the U.S. sector and moving forward into Canada thereafter.