Moody’s rates Videotron notes Ba2

Moody's Investors Service said it rated Videotron Ltee's (wholly owned operating subsidiary of Quebecor Media Inc. (QMI; Ba2 stable)) new $600 million senior unsecured notes Ba2.

The transaction has no ratings implications as it is a debt-for-debt refinance and has negligible impact on Quebecor’s 3.7 times debt/EBITDA (Moody's adjusted at Dec. 31, 2016, net of hedging).

Moody’s said Quebecor’s Ba2 corporate family rating reflects its expectation that Quebecor’s leverage of adjusted debt/EBITDA will normalize at about 3.5 times during 2018/2019 as modest growth of EBITDA continues, and moderating capital and non-operating expenditures allow either debt repayment, or the accumulation of cash that can be applied towards strategic alternatives, effectively precluding material re-levering as the company addresses a key minority shareholder's exit.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.