Moody's affirms Telesat

Moody's Investors Service said it affirmed Telesat Canada's B2 corporate family and probability of default ratings along with ratings for individual instruments.

As well, the company's speculative-grade liquidity rating remains unchanged at SGL-3 (adequate liquidity) and the outlook remains stable, the agency added.

The B2 corporate family/probability of default rating reflects its view that the company's strong underlying business fundamentals, which include a substantial $5.8 billion contracted revenue backlog that provides good earnings visibility, low operating costs that result in strong +70% EBITDA margins, have been substantially exploited by way of a significant debt load and accompanying interest burden, Moody's said.

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