Moody's: Quebecor notes B2

Moody's Investors Service said it rated Quebecor Media Inc.'s new $1 billion senior unsecured notes B2.

As part of the same action, Quebecor's corporate family and probability of default ratings were downgraded by one notch to Ba3 from Ba2.

At the same time, all rated instruments in the Quebecor corporate family were also downgraded by one notch.

The speculative grade liquidity rating remains unchanged at SGL-2 and the outlook is stable.

Quebecor's new senior unsecured notes are being issued to fund the purchase of a portion of the minority equity interest held in Quebecor by Caisse de depot et placement du Quebec.

This debt-financed share repurchase is credit-negative and, with Debt/EBITDA increasing by 0.8x, causes the downgrades, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.