S&P rates Quebecor loans BBB

Standard & Poor's said it assigned its preliminary BBB rating to Quebecor World Inc.'s $1 billion debtor-in-possession loans, which consist of a $600 million term loan and a $400 million revolving credit facility due July 23, 2009.

The preliminary rating reflects S&P's view of the likelihood of repaying the DIP facilities through the company's reorganization and emergence from Chapter 11 in the United States and analogous proceedings in Canada, as well as the recovery value afforded by the assets securing the DIP loans in the event that liquidation becomes necessary, the agency said.

The DIP loan ratings are point-in-time ratings, S&P noted. Accordingly, the agency said it would not review, modify or provide ongoing surveillance of the preliminary rating or any final rating.

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