Moody's rates Telesat Canada B2, loans B1

Moody's Investors Service said it assigned Telesat Canada a B2 corporate family rating and its $2.2 billion senior secured credit facilities a B1 rating (LGD3, 32%).

The outlook is stable.

The corporate family rating reflects aggressive financial leverage, according to the agency, with near-term total debt-to-EBITDA in the high 7 times.

Telesat has a strong operating profile featuring a young satellite fleet with attractive remaining service life characteristics, Moody's said.

The company's C$5.4 billion revenue backlog generates good revenue and earnings visibility to a stable cash flow stream, the agency said.

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