Moody's rates Videotron notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Videotron Ltee's $200 million senior unsecured note issue. Videotron is a wholly owned subsidiary of Quebecor Media Inc.

Quebecor Media, Inc.'s senior secured bank credit facility was unchanged at B1 (LGD5, 74% from 73%); Sun Media Corp.'s senior unsecured regular bond/debenture was unchanged at Ba2 (LGD3, 32% from LGD2, 29%); and Videotron Ltee's senior unsecured regular bond/debenture was unchanged at Ba2 (LGD3, 32% from LGD2, 29%).

The new issue is an add-on to existing 9 1/8% senior unsecured note issue due 2018 that was rated last April. As part of the rating action, Quebecor's Ba3 corporate family and probability-of-default ratings were affirmed along with the stable ratings outlook.

Quebecor's consolidated speculative grade liquidity rating was upgraded to SGL-2 from SGL-3.

Proceeds will be used to repay drawings under its senior secured revolving credit facility with any excess being for general corporate purposes.

Moody's said it affirmed the company's Ba3 corporate family rating because the incremental debt is not expected to cause a permanent increase in leverage.

The SGL upgrade was prompted by the paydown of Videotron's credit facility that will result from the new note issue, the agency said.

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