Kroll Bond Rating Agency assigned issuer ratings of A- to Element Fleet Management and BBB to ECN Capital.

The outlook for both ratings is stable. Additionally, KBRA has withdrawn the BBB+ issuer and senior unsecured debt ratings of Element Financial.

The rating actions follow the completion of a split of Element Financial’s business segments into two publicly traded companies, which closed on October 3, 2016.

The rating of Element Fleet Management reflects EFN’s franchise strength in North America and increasing market position with strong growth prospects, seasoned management with experience in successfully integrated mergers and acquisitions and industry knowledge, as well as a shift in business dynamics to lower risk assets supported by strong financial performance. The rating is primarily constrained by Element Fleet’s acquisitive growth posture, leverage metrics, and dependence on wholesale funding.

The rating of ECN Capital reflects ECN’s leading position in North America within the commercial finance industry, veteran management with substantial industry knowledge and deep, industry relationships, as well as three defined and diversified business segments. The rating is constrained by ECN’s acquisitive appetite, higher risk assets in its commercial and vendor finance business, overall exposure to economic conditions in Canada and the U.S., particularly small to mid-sized businesses, and dependence on wholesale funding.