S&P rates ViaWest, Shaw Data loans B+

Standard & Poor’s said it affirmed the B+ corporate credit rating on ViaWest Inc. and assigned a B+ corporate credit rating on Shaw Data Centre LP.

The outlook is stable.

The agency also said it assigned a B+ rating and 3 recovery rating to ViaWest’s proposed $450 million senior secured credit facilities. ViaWest will issue the proposed $75 million revolving credit facility due 2020 and Shaw Data Centre will issue the $375 million term loan due 2022.

The 3 recovery rating indicates 50% to 70% expected default recovery.

The company’s proposed refinancing will not affect key credit measures meaningfully, S&P said.

Although the agency said it expects leverage to decline modestly to the mid-4x range over the next few years because of EBITDA growth, S&P believes ongoing capital spending requirements will constrain the company’s ability to generate positive free operating cash flow in the near term.

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