S&P raises Telesat Canada

S&P said it raised Telesat Canada’s issuer rating to CCC+ from SD, selective default. The agency also affirmed its issue-level ratings on the company's senior secured and unsecured notes at D, default.

Telesat Canada recently repurchased some of its senior secured and senior unsecured notes at a below-par value, which the agency said it considers a distressed exchange.

“We continue to view that Telesat's exposure to declining direct-to-home (DTH) satellite service, underperforming legacy geosynchronous earth orbit (GEO) operations and delay in its low-earth orbit (LEO) project amid funding uncertainty have increased the risk of the company's cash flow,” S&P said in a press release.

The outlook is negative.

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