Moody’s ups Shaw Communications to positive

Moody's Investors Service said it changed Shaw Communications Inc.'s outlook to positive from stable subsequent to the company's June 13 announcements that it would be divesting its ViaWest, Inc. data center subsidiary (B2 under review for downgrade), and acquiring wireless spectrum from Quebecor Media Inc. (Ba2, stable).

As part of the same action, the agency affirmed Shaw's Baa3 senior unsecured ratings.

"We changed Shaw's outlook to positive because proceeds from the data center divestiture enhance financial flexibility as Shaw builds out its wireless network and deals with intense competition in its core fixed-line business," Moody's senior vice president Bill Wolfe said in a news release.

Pro forma for the transaction, the agency estimates that Shaw's (Moody's adjusted) leverage of debt/EBITDA declines to roughly 2.6 times from 3 times (as of Feb. 28). Moody's also expects the company's cash position to be bolstered by about C$350 million.

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