Moody's affirms Teekay

Moody's Investors Service said it affirmed Teekay Corp.'s corporate family rating at Ba2, senior unsecured rating at Ba3 and speculative grade liquidity rating at SGL-2.

The outlook was changed to stable from negative.

Moody's said that while certain financial metrics remain weak for the Ba2 rating category, the affirmation considers the stability to operating performance by having about half of the fleet operating under long-term charters.

The company also benefits from substantial operating cash flow, large liquidity cushion and the retained value of the subsidiaries, the agency said.

These factors balance the risk of having a portion of operating cash flow exposed to the highly-cyclical spot market and the elevated financial leverage resulting from acquisitions and ongoing investments to grow the business, Moody's said.

Teekay has a debt-to-EBITDA ratio of about 7 times.

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