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S&P rates Quebecor notes B
Standard & Poor's said it assigned a B debt rating to Quebecor Media Inc.'s proposed $450 million 7¾% senior unsecured notes due 2016.
The notes are rated two notches below the BB- long-term corporate credit rating, reflecting their junior position in the company's debt capital structure, S&P said.
Subsidiaries Videotron Ltee and Sun Media Corp. both have BB- corporate credit ratings and BB+ senior secured debt. Videotron has a B+ senior unsecured debt rating and Sun Media has a B senior unsecured debt rating.
The outlook is stable.
Proceeds will be used to refinance the C$420 million bridge loan and related fees to fund the acquisition of Osprey Media Income Fund. The issuer's pro forma adjusted debt leverage is about 4 times.
The ratings reflect the company's aggressive financial risk profile, high debt leverage, challenging industry fundamentals for the newspaper division and intense competition in its business segments, S&P said.
These factors are partly offset by the company's solid market position in cable and newspapers, the agency said.
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