S&P assigns BB- to Telesat Canada loans, notes

S&P said it assigned BB- ratings to with 3 recovery ratings to Telesat Canada’s proposed $1.8 billion term loan B and $500 million of secured notes. A 3 recovery rating indicates an expectation of meaningful (50%-70%; estimate: 55%) recovery in default.

The proceeds will be used in a refinancing, which S&P considers leverage neutral. The refinancing also “improves financial flexibility due to the increase in tenure,” the agency said in a press release.

S&P affirmed the company’s BB- rating.

The outlook is stable.

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