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 trends are stable.

According to the agency, Videotron's BB (high) issuer rating is supported by its strong market position in Quebec, with a cable footprint that covers 2.6 million homes, services 1.8 million basic subscribers and generates strong operating metrics and good operating leverage.

Despite this, DBRS noted that Videotron's issuer rating remains constrained by the leverage at its parent, Quebecor Media Inc., which continues to depend on cash distributions from both Videotron and other operating subsidiaries to support its own interest costs and funding requirements.

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