Moody's: Videotron notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Videotron Ltee's new 10-year senior unsecured notes.

The rating is equivalent with the ratings on the company's existing senior unsecured notes, which were affirmed.

Videotron is a wholly-owned subsidiary of Quebecor Media Inc.

The agency also said it affirmed Quebec Media's Ba2 corporate family and probability of default ratings, along with its SGL-2 speculative-grade liquidity rating, the Ba3 rating on its senior secured bank credit facility and B1 rating on its senior unsecured notes.

The outlook remains stable.

The transaction is a positive as it extends Videotron's weighted average term to maturity, Moody's said.

Since the proceeds will be used to prepay all of the remaining 6 7/8% senior unsecured notes due Jan. 15, 2014 and to repay drawings under Videotron's revolving credit facility, the transaction does not change Quebecor Media's consolidated debt or cash flow and is therefore credit neutral.

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