Moody's lowers Quebecor World

Moody's Investors Service said it downgraded Quebecor World Inc.'s corporate family rating and probability of default rating to B2 from B1 following the company's decision to up-size its secured debt by $125 million.

At the same time, ratings of the company's $450 million three-year term loan, upsized from $325 million, is now rated B1 as is its $350 million three-year ABL revolving credit facility ($100 million expected to be drawn at closing); both secured credit facilities had previously been rated Ba3.

Moody's noted that the above ratings continue to be preliminary and are based on the capital structure currently contemplated by the company.

The rating assessment also assumes that financial covenants are set at levels that do not restrict Quebecor World's access to the $350 million three-year ABL revolving credit facility over the near-to-mid term, Moody's added.

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