Moody’s: ViaWest view to stable

Moody's Investors Service said it changed the outlook of ViaWest, Inc. to stable from negative following the company's July 31 announcement that Shaw Communications Inc. (Baa3, stable) entered an agreement to acquire 100% interest in the company for an enterprise value of $1.2 billion.

The outlook revision reflects Shaw's strong credit profile and sponsorship and, with the transition to a strategic from a private equity owner, a much-reduced potential of increased leverage to support shareholder return initiatives.

Although ViaWest is being acquired by an investment-grade company, Moody's said it believes that ViaWest's debt will remain non-recourse to Shaw and ViaWest is likely to operate as an independent subsidiary.

The transaction is expected to close in September 2014, subject to U.S. regulatory approval.

As part of the rating action, the agency affirmed the company's B2 corporate family rating, B3-PD probability of default rating and B2 rating on the senior secured credit facilities.

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