DBRS confirms Videotron

DBRS said it confirmed Videotron Ltee's issuer rating at BB (high), its secured bank debt rating at BBB (low), with a RR1 recovery rating, and its senior unsecured notes at BB (high), with a RR3 recovery rating.

The trend is stable.

Videotron's BB (high) issuer rating is supported by its strong market position in Quebec, the agency said.

The rating remains constrained by the leverage at its parent, Quebecor Media Inc., the agency noted.

Videotron benefits from subscriber growth in digital, high-speed internet and telephony, with a rising number of subscribers taking multiple services, the agency noted.

The company has a stronger financial risk profile, with gross debt-to-EBITDA ratio remaining below 2.5 times for the past 5½ years, DBRS said.

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