Moody's rates Abitibi loan B1

Moody's Investors Service said it assigned a B1 rating to the proposed new $450 million secured term loan at Abitibi-Consolidate Inc.'s subsidiary Abitibi-Consolidated Co. of Canada.

At the same time, Moody's said it affirmed Abitibi's corporate family rating of Caa1, the probability-of-default rating of Caa3, the senior unsecured ratings of Caa2 and the B1 rating assigned to the new $415 million secured notes due 2011.

In addition, Abitibi's speculative-grade liquidity rating was affirmed at SGL-4 and the outlook remains negative, the agency said.

The corporate family rating of Abitibi reflects the company's high debt levels, its weakened liquidity profile and the company's significant refinancing risk, Moody's said.

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