Moody's may downgrade Quebecor World

Moody's Investors Service said it placed the Ba3 corporate family rating, Ba3 senior unsecured rating and B2 senior subordinated ratings of Quebecor World, Inc.'s subsidiaries under review for possible downgrade, which the agency said is prompted by Quebecor's continuing poor operating performance.

The review will focus on the likelihood that new press investments and a broader restructuring and cost-reduction effort that have been underway for some time will actually result in improved margins and cash flow, the agency said.

The speculative grade liquidity rating of SGL-3 is affirmed. This rating has been moved from Quebecor World, Inc. to Quebecor World (USA), Inc., which is the senior-most entity within the group for which Moody's provides a debt rating, and at which the corporate family rating now resides.

Also placed on review for possible downgrade is Quebecor World Capital Corp.'s Ba3 senior unsecured regular bond/debt rating and Quebecor World Capital ULC's Ba3 senior unsecured regular bond/debt rating.

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