Kroll Bond Rating Agency Releases Comment: Element Financial Corporation Continues Strengthening Fleet and Rail Verticals

NEW YORK--(BUSINESS WIRE)--

Kroll Bond Rating Agency (KBRA) releases comment entitled "Element Financial Corporation Continues Strengthening Fleet and Rail Verticals."

Element Financial Corporation (TSX:EFN, "Element", or "the Company") has announced the acceleration of its strategic initiative to sell its Canadian commercial and vendor (C&V) business in the first quarter of 2016. The Company intends to reinvest the capital in organic and acquisitive growth opportunities in the Company's core fleet management business. Element has also signed a new four-year agreement with Trinity Industries, Inc. TRN based in Dallas, Texas, under which Element will purchase up to USD 1 billion of leased railcars. Element plans to increase its rail book by approximately 25% in 2016.

Kroll Bond Rating Agency (KBRA) views the overall impact of the sale of the C&V business as credit positive as it supports Element's strategic vision to establish its presence in North America as a leading fleet management company. Further, the sale of the C&V business and the new agreement with Trinity should strengthen the Company's core fleet management and rail businesses, which KBRA view as relatively low risk. Additionally, Element is shifting the focus of its aviation vertical to aircraft fund structuring mandates with potential gains from further fees. In June of 2015, KBRA affirmed the issuer/senior unsecured debt rating of BBB+ with a stable outlook for Element Financial Corporation. The ratings are based on KBRA's Finance Company Rating Methodology, published on April 1, 2013. The ratings and supporting rationale are available at www.kbra.com.

The full comment can be viewed at:

www.krollbondratings.com/show_report/3148

The full rating report can be viewed at: www.krollbondratings.com/show_report/1586

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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